Vietnamese electric vehicle maker VinFast reported a deeper second quarter loss on Friday, driven by rising costs linked to its ambitious Asia expansion, though its revenue remained on a rising trend, according to its exchange filing.
VinFast, which started delivering cars in California last year, reported a gross loss of $224m (R3.90bn) in the April to June period, compared with a $151m (R2.63bn) gross loss in the quarter before.
While revenue from accelerated vehicle deliveries jumped 33% quarter-on-quarter to $357.4m (R6.21bn), that was not enough to offset higher costs of sales and operations.
VinFast has been expanding aggressively to Asian markets to capitalise on growing demand for electric vehicles in those regions and offsetting a weaker buying environment in the US.
The EV maker's gross margin stood at negative 62.7% in the second quarter, primarily due to an impairment charge on the net residual value of $104m (R1.81bn), compared to $5m (R86.9m) in the us one before.
However, excluding the factors, the company noted an improvement in gross profit margin.
Deliveries in the first half of 2024 were recorded at 22,348 vehicles, up 101% against the same period last year, with half the deliveries made to affiliates of its parent company.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.