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VinFast Relying On Battery Leasing To Catch Up With Gas Vehicles — CEO Says, ‘Fee Is Even Lower Than The Cost For Gasoline’

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VinFast Auto VFS CEO Le Thi Thu Thuy said on Thursday that it expects the company’s battery leasing policies to set it apart from competitors in select markets while shedding light on the different benefits of the policy.

What Happened: As per the company’s battery leasing policy, buyers pay a price for the vehicle without the battery and lease the battery for a monthly fee. This, the company believes, will help bring down the high cost of EVs to make them more affordable to the customer.

“This mechanism brings the upfront price of our vehicles and the monthly costs now in line with or even more competitive than many gas-powered vehicles on the market today,” Thuy said on Thursday. The monthly leasing fee covers all repairs, maintenance, and replacement costs of the battery.

“The interesting point is the battery leasing fee is even lower than the cost for gasoline for equivalent vehicle,” Thuy said.

VinFast started delivering in the U.S. in March 2023. Its electric VF8 SUV has a starting price tag of $46,000 in the country.

Company Financials: On Thursday, the company reported fourth-quarter earnings per share of $(0.28) loss, wider than the Wall Street view of $(0.23) loss, and quarterly sales of $436.5 million.

EV deliveries were 13,513 in the quarter, representing an increase of approximately 35% from the third quarter.

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Price Action: VinFast shares closed down 3.4% at $5.08 on Thursday, according to data from Benzinga Pro.

Photo by VanderWolf Images on Shutterstock

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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