VinFast Auto, a prominent electric car manufacturer from Vietnam, recently marked its debut on the Nasdaq stock exchange with an impressive IPO. With its current market cap of up to $86 billion, the company is looking to significantly impact the electric vehicle (EV) market.
VinFast is excited to introduce its electric vehicles in Israel and Europe within the same year.
VinFast’s Entry Into The Global EV Market
Sources have revealed that VinFast has successfully undergone compliance checks to meet the rigorous European WVTA (Whole Vehicle Type Approval) standard for its VF8 electric crossover. This achievement is a game-changer for the company, allowing it to sell electric cars throughout Europe without any quantity limitations.
Notably, this is a significant step for VinFast, which had primarily sold a limited number of vehicles in the US market. While last year was the anticipated date of obtaining the WVTA certification, the company faced technical and financial challenges that led to delays.
However, the firm has overcome these obstacles and is on track to obtain similar approval for its larger VF9 model by the end of this year. In a strategic move, the first VinFast vehicle that complies with European standards is ready to make its way to Israel for certification and import approval by the Ministry of Transport in the next few weeks.
This move aims to ensure these vehicles’ availability for sale before a slated increase in purchase tax on electric cars comes into effect on January 1, 2024. As a result, Israel is set to become one of the pioneering markets globally where VinFast’s electric vehicles will be available for regular purchase.
Unveiling The VF8 Crossover And VF9 Model
The model expected to launch in Israel is the VF8 crossover, boasting a length of 4.75 meters, width of 1.93 meters, and height of 1.67 meters, supported by a 2.95-meter wheelbase. This model will be in two versions, equipped with two motors and dual propulsion systems, generating an impressive combined output of either 408 or 354 horsepower, depending on the version.
The vehicle will feature an 87-kilowatt battery, providing a remarkable range of 447 or 471 kilometers, depending on the chosen version. Meanwhile, the pricing for this model in Germany begins at €50,000 for the basic version and €58,000 for the long-range version.
These prices notably undercut the equivalent versions of Tesla’s Model Y by several thousand euros. While the exact prices for Israel are yet to be confirmed, analysts believe they will range from approximately NIS 230,000 for the basic version to around NIS 280,000 for the long-range version.
Additionally, the VF9 model, boasting a length of 5.12 meters, is set for launch later this year. It will share the same propulsion system as the VF8 but with a larger 123-kilowatt capacity battery, offering an extended range of up to 600 kilometers.
Hence, this model will sell at a higher price point. VinFast is leveraging the experience of BE-V Motors to enter the Israeli market.
BE-V Motors is led by industry veterans Niv Oron and Barak Cohen, who have experience managing prestigious brands such as Audi and BMW. Meanwhile, the recent acquisition of 50% of B-EV by Carasso Motors demonstrates the growing interest and investment in VinFast’s expansion.
The recently signed free trade agreement between Israel and Vietnam strengthens the timing of VinFast’s entrance into the Israeli market. This agreement offers favorable customs duty rates on vehicle imports, making it the right moment for VinFast to make its mark in the Israeli market.
Following its NASDAQ listing, VinFast’s share price skyrocketed by 108% in a single day, even without any official news release.