EV maker Vinfast reports sixth consecutive quarterly net loss

The carmaker had previously identified the U.S. as a key growth market.

Vietnamese EV maker VinFast reported its sixth consecutive quarterly net loss as it continues to ramp up spending to boost sales volumes.

A net loss of $712.4 million was reported for the first quarter, less than the $1.3 billion loss in the previous quarter but 20 percent more than a year earlier. Analysts' average forecast was for a $616.3 million loss, according to LSEG data.

Revenue jumped 150 percent to $656.5 million in January-March, compared with analysts' average estimate of $520 million. Driven mainly by sales in Vietnam, deliveries were also up by 300 percent to 36,330 vehicles in the quarter.

However, Vifast is facing challenges due to weak consumer demand, stiff competition, and a 25% tariff the U.S. has imposed on imported vehicles. The carmaker had previously identified the U.S. as a key growth market.

The company reported a gross margin of minus 35.2 percent in the quarter, compared with minus 58.7% a year earlier. Research and development expenses fell 22.3% year on year in the quarter, while the cost of sales more than doubled over the same period, it said.

VinFast, which has reported a loss every quarter since it went public in August 2023, has received around $2 billion in financial support from its founder and CEO Pham Nhat Vuong and Vingroup, as of May.

Moving ahead, Vinfast is shifting from the costlier option of its own showrooms to a dealership model. Also, because of the challenges faced in the U.S., it is now focusing on Asia.

Vinfast’s new assembly plant in India is set to be operational by July this year. Product launches are expected to happen during the festive season in the country.

Earlier this year, Vinfast showcased its model lineup at the Bharat Mobility Expo 2025.

Source: Reuters