In response to Tesla’s price cuts, Vietnam’s VinFast plans to run ads.
VinFast, an electric vehicle (EV) maker in Vietnam, said on Thursday that it will run promotions to keep its models competitive in the market. This comes a week after Tesla (NASDAQ:TSLA) said it would offer deep discounts to boost sales.
VinFast has been in business since 2019, and it is getting ready to grow in the United States. It plans to compete with other automakers by offering two models, the VF8 and the VF9, which start at $59,000 and $83,000, respectively.
In the U.S., Tesla’s basic Model Y costs $52,990, which is less than its previous price of $65,990.
A VinFast spokesperson said in a statement, “As a new brand entering the market, when other brands lower their prices, we have to come up with promotions to keep VinFast competitive.”
“We’re thinking about a lot of ways to promote, and we’ll let you know soon.”
The statement didn’t say if the discounts would be part of the sales.
The Vietnamese company that makes EVs started sending its first batch of 999 EVs to the U.S. at the end of November, and a spokesperson said that the cars should be delivered to customers this month.
VinFast says it has almost 65,000 orders from all over the world and plans to sell 750,000 EVs each year by 2026.
The automaker wants to build an electric vehicle (EV) plant in the U.S. state of North Carolina and is waiting for local officials to give their final approval.