VinFast Plans to Shut Down Half of Its Canadian Retail Locations
In a strategic move aimed at enhancing long-term performance and better aligning operations with current EV demand, Vietnamese electric vehicle automaker VinFast is refocusing its Canadian strategy. The company is shifting from a product-centric approach to a customer-centric one, prioritizing long-term customer care, transparent service, and support.
VinFast's new strategy emphasizes strong post-sale service, offering an industry-leading warranty (10 years or 200,000 kilometers for the vehicle and unlimited kilometers for the battery) and 24/7 customer hotline support. The company is also launching a comprehensive public EV charging hub accessible via its mobile app, addressing charging availability concerns, a common barrier for EV adoption.
The shift comes as VinFast prepares to launch the VF 9 in Canada by 2025, aiming to tap into the rising EV demand with sustainable and competitively priced models. However, the company is facing challenges due to broader EV industry headwinds and a more cautious consumer base.
Recent elimination of provincial and federal rebates in Canada, coupled with rising interest rates, reduced subsidies, and slower-than-expected infrastructure buildout, have tempered consumer enthusiasm across North America. As a result, VinFast has registered only 89 new vehicles across Canada in 2023, despite aggressive marketing and competitive pricing.
Despite these challenges, VinFast continues to show its commitment to the Canadian market. The company entered the Canadian market in mid-2023 with the launch of the VF 8, its first all-electric SUV. In the face of underwhelming retail performance, VinFast is considering new options for its go-to-market strategy, including the introduction of franchised dealerships, a model it has already begun rolling out in the United States.
VinFast is pivoting its broader global strategy by shifting focus toward Asian markets where its growth prospects appear more promising after difficulties in the US and Europe. The company plans to announce plans to expand its after-sales service network nationwide, but specific details have yet to be provided.
The closures will happen in Vancouver (BC), Toronto (ON), and Laval (QC), as well as two unspecified locations. The company will maintain a presence in Ontario, British Columbia, Quebec, and Alberta. Despite these closures, VinFast remains optimistic about its future in Canada and the rising EV market.
The company's decision to close half of its stores is a reflection of the broader EV industry headwinds, but it also marks a strategic refocus aimed at enhancing long-term performance and better aligning operations with current EV demand. As VinFast navigates these challenges, it continues to prioritize customer trust and support, positioning itself as a player in the increasingly competitive EV market dominated by established players like Tesla, Hyundai, and Ford.
- VinFast, in an attempt to align with the current electric vehicle (EV) demand and enhance long-term performance, is refocusing its strategy, not only in Canada but also globally, by prioritizing customer-centric operations and technology advancements in the automotive industry, such as the introduction of franchised dealerships and an industry-leading warranty.
- As part of its refocused strategy, VinFast is expanding its after-sales service network across Canada and beyond, offering a 10-year or 200,000 kilometers warranty for the vehicle and unlimited kilometers for the battery, in addition to launching a comprehensive public EV charging hub accessible via a mobile app to address charging availability concerns.
- Despite the global challenges faced by the EV industry, such as the elimination of rebates in Canada, rising interest rates, reduced subsidies, and slower-than-expected infrastructure buildout, VinFast is remaining optimistic about its future in Canada and the rising EV market, positioning itself as a player that values customer trust and support, ready to compete with established players like Tesla, Hyundai, and Ford.
