Following recent Q4 2023 results that relayed a miss on annual delivery targets, Vietnamese EV automaker VinFast continues to bolster its global presence with the help of distribution specialists. Today, VinFast and a local dealer network in the Middle East signed an agreement to bring the former’s EVs to the region.
2023 was a big year for young EV automaker VinFast ($VFS), which saw revenues rise, but deliveries slip due to several issues. Since parent company VinGroup opened up its automotive arm in Vietnam, we’ve witnessed VinFast continue to expand to new markets, including Indonesia, the US, Canada, Europe, and most recently, India – all while unveiling more all-electric models like the VF 3 compact SUV and an electric pickup concept called the Wild.
VinFast it taking a unique approach to its business in that it is simultaneously working to balance revenue growth through cost optimization while trying to manufacture and deliver 100,000 EVs. Not to mention also trying to expand at a blazing rate.
To do so, the Vietnamese automaker has begun relying on dealership partners in certain markets, like the US, for instance. As VinFast hones in on new markets in the Middle East, it has announced a new distribution partner to aid in the process.
VinFast signs with BAT to sell EVs in the Middle East
Per a release from VinFast today, it has signed an agreement with Bahwan Automobiles Trading LLC (BAT), which has become the automaker’s official dealer and will aid in distributing its EVs in the Oman market.
As part of the agreement, BAT will establish and operate 13 VinFast stores and service centers over the next three years, with initial sales in the Middle East commencing in mid-2024. To begin, BAT will sell four VinFast SUV models: the VF 6, VF 7, VF 8, and VF 9.
The deal follows an initial Memorandum of Understanding for Cooperation signed by VinFast and BAT at the United Nations Climate Change Conference 2023 (COP 28), held in the United Arab Emirates (UAE) last year. VinFast Middle East CEO Ta Xuan Hien spoke:
Oman presents a promising market for electric vehicles, as consumers in the nation demonstrate a growing interest in sustainable and environmentally friendly transportation solutions. We are confident that this dealer sales agreement with BAT, a leading and highly reputable dealer in Oman, will empower VinFast to swiftly establish a presence in the market and provide customers in the country with the most diverse and high-quality selection of electric vehicles available.
VinFast pointed out that the Omani government has already implemented several initiatives to encourage EV adoption and reduce carbon emissions in the Middle East. The Vietnamese automaker sees Oman as a new market that promises plenty of projected growth.
With EVs now coming to Oman, VinFast shared intentions to eventually expand to more regions of the Middle East to ensure more consumers gain access to its sustainable technology.
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