The move is intended to attract deal-starved EV buyers and avoid losing consumers to Tesla, which continues to confidently dominate the market despite a chaotic performance in 2022. The battle for the few customers in the space is intense, and, as a brand representative bluntly noted, “when other brands reduce their prices we have to come up with promotions to ensure VinFast’s competitiveness.” Details on the VinFast promotions, however, have yet be provided, and it is not clear if the automaker will lower prices or use other consumer-friendly tactics to achieve its goals.
The story does shine light on a growing movement in the EV market. While original shoppers were early tech adopters who had the money to spend on risky investments, today’s buyers are much more focused on cost-effectiveness. While luxury options are unlikely to disappear, high prices will need to, at least if automakers hope to achieve their anti-ICE ambitions. A Tesla price cut used to be a rare sighting, but the recent adjustment, which saw a staggering 20% decrease to the Model Y’s $65,990 original price tag, is the second in as many months, as the brand quietly made holiday discounts available to shoppers only a month before. As time advances, so too will the rate of EV discounts.
However, until more information is provided on the VinFast promotions, it is unclear what impact they will have on the automaker’s currently minuscule U.S. presence. The brand made its first North American deliveries only three months ago, and has a long way to go if it hopes to become a major player in the states.
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