Vietnamese electric vehicle (EV) manufacturer VinFast (NASDAQ:VFS) announced Thursday the delivery of nearly 35,000 cars in 2023, falling short of its initial target of at least 40,000 units. The company attributed this shortfall to slow EV adoption in certain regions, intense competition, and an uncertain economic environment.
Despite the miss, deliveries in the final quarter of 2023 witnessed a notable increase of 35%, reaching 13,513 units compared to the third quarter.
"We saw a significant ramp up in vehicle deliveries in the fourth quarter," said Deputy CEO of sales, Tran Mai Hoa. "However, against a challenging market backdrop, EV adoption rate in certain regions has been slow, leading to fewer deliveries than we anticipated," she added.
While VinFast did not provide a detailed breakdown of market-specific sales in Thursday's announcement, approximately 60% of the deliveries during the second and third quarters were directed towards Green SM (GSM), an affiliate of VinFast. GSM, a Vietnam-based taxi operator and leasing provider, is predominantly owned by VinFast's CEO, Pham Nhat Vuong.
The Vietnamese automaker recently revealed plans to establish manufacturing and battery facilities in India. Additionally, the company is eyeing expansion into more markets in the Middle East, Latin America, and Asia, including Indonesia.
Shares of VFS are up 1.04% in pre-market trading Thursday morning.