Vietnamese electric vehicle maker VinFast has delivered its first 45 cars to customers in California, marking its entry into the U.S. market.
The company, a subsidiary of Vingroup JSC, had shipped 999 vehicles to California in November, but faced over two months of delays before delivery.
In response to these delays, VinFast cut the lease price of its VF8 electric crossover by 50% last week to attract more customers.
Early reservation holders expressed frustration when VinFast announced that the initial VF8 shipment would have a lower battery range than initially marketed.
The company also removed the option for consumers to rent the car’s battery, which had been promoted as a cost-saving measure.
The rebranded VF8 City Edition Eco, reflecting its reduced range, has an EPA-estimated battery range of 207 miles (333 km).
VinFast’s first vehicles in the U.S. are available for lease through US Bancorp, although the National Highway Traffic Safety Administration (NHTSA) has not yet issued a safety rating for them.
Under President Joe Biden’s incentive program, VinFast vehicles are eligible for a subsidy of up to $7,500 per vehicle, payable to the finance company.
The company is entering a competitive market, where established automakers, led by Tesla, are driving prices down and launching new electric vehicles (EVs).
U.S. EV startups like Lucid, Rivian, and Nikola have recently reported lower orders, higher interest rates, and increased competition in their quarterly results.
At VinFast’s Marina Del Rey store in California, customers like James and Nicole Wang received their VF8 after reserving it earlier this year. “We’re early adopters, we like to try things out,” said James Wang.
Another couple, Andrew and Nikki Le, took delivery of one of the 11 VinFast cars they ordered after visiting the VinFast factory in Haiphong, Vietnam, in May.
VinFast announced that major insurers like State Farm, Allstate, and Progressive would provide policies for its new model.
Last year, vehicle subscription service Autonomy agreed to purchase 2,500 VinFast vehicles, though Autonomy has not commented on when deliveries will begin.
Faced with initial delivery delays, VinFast cut several jobs in the U.S. and Canada and merged its operations in these markets earlier this year.
The company is currently awaiting final regulatory approval to start construction of a $4-billion plant in North Carolina.
