VinFast presented three models and their prices at its maiden show in Hanoi Tuesday afternoon.
Its five-seat sedan Lux A2.0 and seven-seat SUV Lux SA 2.0, which had already been revealed to the public for the first time at the Paris Motor Show last month, cost VND800 million ($34,305) and VND1.136 billion ($48,709) respectively.
The smaller hatchback Fadil, presented for the very first time, costs VND336 million ($14,410).
These prices are exclusive of a 10 percent value added tax.
The company said it was announcing favorable prices for the “initial phase.” The original prices of the hatchback, the sedan and the SUV are VND423 million ($18,140), VND1.336 billion ($57,300) and VND1.818 billion ($78,000) respectively, it said.
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VinFast’s SUV Lux SA2.0 |
But VinFast did not say for how long the promotional prices will last or how many cars will be produced in the initial phase.
VinFast, a unit of Vietnam’s largest private conglomerate Vingroup JSC, surprised industry insiders by completing its first two units, the SUV and the Sedan, within one year.
Its first two models are built on frames from BMW. Their components have been engineered by Canadian firm Magna International’s Magna Steyr, while design work was done by Italian design house Pininfarina.
The small hatchback, Fadil, meanwhile, was developed from the background of the Opel Karl Rocks model in the European market. Its structure is almost equivalent to the latest Chevrolet Spark generation.
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VinFast’s Lux A.20. |
Public unimpressed
The general public and prospective car buyers do not appear to be very impressed by VinFast’s announcements.
Most VnExpress readers said the prices of VinFast’s new cars were not convincing.
Reader Tran Van Ben said the price of VinFast’s Fadil would be around VND358 million ($15,350) with tax, the same as Mirage MT of Mitsubishi. This price will make it difficult for Fadil to compete with imported products, he said.
Another reader, Nguyen Van Thuan, said including all procedural fees, VinFast’s sedan would cost more than VND900 million ($38,600).
So it would be better to choose a Huyndai Elantra 1.6 Sport, which costs only VND830 million ($35,600), he said.
Mike Dunne, an independent industry analyst who has spent more than three decades in Asia, said he doubted VinFast cars would generate much demand in a country with an average income of $2,385 last year.
Vietnam’s population is around 93 million, larger than South Korea, but car consumption is only around 300,000 units a year, he recently told U.S. television channel CNBC.
While there is little doubt the market would grow, it won’t happen fast enough to absorb VinFast’s production, planned at 250,000 vehicles annually, he said.
Other experts are concerned that VinFast will have trouble establishing a brand in Vietnam where the supporting industry is weak.
There are only 358 businesses in the auto industry in Vietnam compared to 2,500 in Thailand, according to the Ministry of Industry and Trade. Over 90 percent of auto parts are imported, it added.
Vietnam’s first domestic car manufacturer bets big at Paris Motor Show