On the Dash:
- VinFast has closed at least two U.S. dealerships, shrinking its retail network to fewer than two dozen locations.
- The automaker is investing heavily in Asian markets while U.S. sales and dealer inventory remain limited.
- The expiration of federal EV tax incentives adds further pressure to VinFast’s already challenged U.S. outlook.
VinFast is shrinking its footprint in the United States. The Vietnamese electric vehicle startup recently closed two dealerships, with a third likely to follow. The shuttering of these retail locations has effectively shrunken the EV maker’s retail network to fewer than two dozen stores.
Concerns surrounding VinFast’s commitment to growing in the U.S. are rising. The automaker currently sells two vehicles in the U.S., the VF8, a mid-size SUV, and the VF9, a larger, three-row SUV. However, only 17 of the company’s 22 U.S.-based dealers list inventory. Despite reaffirming its plans for the U.S. market this year, the company has invested heavily in Asian markets such as India, Indonesia, and the Philippines, which may signal a pivot away from the U.S. market.
“VinFast’s expansion in Asia is an important part of our overall growth strategy to promote global transportation electrification,” a spokesperson told Kelley Blue Book, adding that the company plans to expand its dealership network nationwide.
However, VinFast’s significant investments in other markets and pullback in the United States may signal a shift in strategy. The company continues to grow in popularity in Asia, while sales in the U.S. and Europe remain weak.
The EV maker’s prospects in the U.S. market may face a sharper decline due to the recent expiration of federal EV tax incentives, which have been a key driver of consumer demand.
