The climbing cost of cars worldwide is creating quite the pinch for consumers. Some are seeing opportunity, especially the Vietnamese. VinFast, which is backed by a real-estate conglomerate from the country, is rolling out a new hatchback that costs just $17,000 USD, and it could start making some serious waves.
This lines up with Vietnam looking to become more of a force in the manufacturing world. With other Pacific Rim countries making similar moves, there’s no telling how this could affect China, Japan, and countries in the Western Hemisphere. In addition, this move comes from the private sector, showing communism’s grip in Vietnam is loosening as opportunity sits on the horizon.
Don’t expect to buy a VinFast car in North America anytime soon. Even though deliveries of the first model, called Fadil, start now, sales of the initial 250,000 will be restricted to the immediate region. The car rides on the same platform as the Opel Karl Rocks. Upcoming sedan and SUV models will use BMW platforms.
Believe it or not, this isn’t the first Vietnamese automaker. Back in 2015 Vinaxuki closed shop after a failed attempt to win over domestic shoppers. Analysts say the fact the Vietnamese are so brand conscious, preferring established automakers, didn’t help. That’s not great news for VinFast. It faces a big uphill battle, but if successful it could help shift the car market in Asia and maybe beyond.
Source: Automotive News