According to foreign media reports, recently, VietnamElectric vehicleManufacturer VinFast will open its first franchised dealership in California by partnering with San Diego-based Sunroad Automotive Group after completely abandoning its direct sales model in the US market.
VinFast said the store, called “VinFast San Diego,” will open this month to provide sales, service and warranty repairs for its two electric vehicles. Previously, VinFast only retained the direct sales model in the California market, while allowing the opening of dealerships in other US states.
Image source: VinFast
Mike Nolte, Vice President of U.S. Sales at VinFast, said: “The addition of our first distributor in California marks a key step in VinFast’s transformation into a distributor model and an important milestone in building our global distributor network. ”
Despite VinFast’s ambitions since launching its first model in California in early 2023, its sales performance has been lackluster. According to data from S&P Global Auto, from January to April this year, the company’s new car registrations in the United States were only 723 units, down 46% from the same period in 2024. In 2024, the company registered 4,186 units in the United States, compared to 265 units in 2023.
However, Paul Fillmore, general manager of Sunroad’s VinFast San Diego store, said: “We believe VinFast has strong potential to make a lasting impact in the North American market. It is reported that Sunroad has 9 stores in the San Diego area, representing 14 car brands, and its official website also shows that it has 16 dealers in Mexico.
“In addition to the San Diego store, the company is actively looking for and evaluating opportunities with other potential distributors in California,” VinFast said. ”
VinFast recruited franchised distributors in the United States for the first time in late 2023, but retained 15 directly operated showrooms in California. In April, the company announced that it would close these stores and expand in California through third-party dealers.
Currently, VinFast has 30 franchised dealers in 15 US states selling two mid-size SUVs – 2-row VF 8 and 3-row VF 9, both imported from Vietnam and arrived in the US at the end of last year.
In January 2024, VinFast management told Automotive News that the company plans to build a factory in the United States and hopes to have 125 points of sale in the United States. But then VinFast postponed plans to build a factory in North Carolina.
In early June, VinFast reported a net loss of $712 million in the first quarter, marking its sixth consecutive quarter of loss. The company’s global sales in the first quarter were 36,330 units, mainly in the Vietnamese market.
