Vietnamese automaker VinFast has launched a luxury SUV, the VinFast President, to take on global brands like Lexus and Mercedes. To cost VND4.6 billion ($198,200), the seven-seater looks similar to VinFast’s first SUV, the Lux SA2.0, but with more advanced technologies and frills like massage and heated seats.
Its 420HP V8 engine can go from zero to 100 kilometers per hour in 6.8 seconds and offers a top speed of nearly 300 kph. VinFast will produce only 500 units and sell them exclusively in Vietnam. The first 100 customers will get a 17% discount on the price.
In its segment, the VinFast President costs 45% less than the Lexus LX 570 and 33% less than the BMW X7. Industry insiders say it lacks some premium features often seen in luxury cars such as captain’s chairs, TV screens and a high-end sound system. The vehicle signifies the ambition of VinFast, a unit of Vietnam’s largest conglomerate, Vingroup, to enter all segments of the auto market after bringing out its first vehicle in July last year.
Source: VN Express (The original article was partially revised by the author.)
PSR Analysis: The pricing is quite bullish and it remains to be seen whether it will sell out or struggle. The announcement comes at a time when the domestic economic slowdown caused by the pandemic is clearly evident and is an indication of their desire to ‘prove that Vietnam can build cars that are internationally recognized’.
The release of this model is seen as an action to refine the brand rather than to make a profit. VinFast’s challenge has been received favorably in Vietnam and has created a supportive atmosphere. Of course, it won’t be able to increase its international presence immediately, and it will take years to raise its profile abroad. It will also cost a lot of money to promote. The first step would be to gain market share in the domestic market. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research,
