Why does VinFast sell electric cars but does not include the price of battery packs?
Recently, within the framework of the New York International Auto Show 2022 (NYIAS 2022), Vietnamese electric car company, VinFast has officially announced the battery rental price for 2 models of VF 8 and VF 9 in the US market.
Not only that, VinFast recently invested $2 billion to build the first US factory in North Carolina. Additionally, the company also announced a partnership with Electrify America to provide customers with access to fast charging systems across the US. In addition, VinFast has announced a plan to cooperate with Amazon and integrate Alexa voice assistant into electric cars from 2022.
VinFast’s battery rental model involves the company selling electric vehicles but does not include the price of battery packs. Instead, customers can rent batteries for a monthly fee based on how far they’ve traveled. The company thinks this model can make their vehicles more accessible.
Specifically, VinFast’s Vice President of Global Sales and Marketing, Mr. Emmanuel Bret, shared that the battery rental model solves two problems.
“We have decided to apply the battery rental model. Because first of all, this helps VinFast have a lower price compared to competitors. Second, this helps VinFast achieve its desire. , that is to make VinFast a premium product for everyone,” Mr. Emmanuel Bret told Yahoo Finance.
“We have a long-term strategy of growing the brand around the world, and the US is definitely really a key market. So we really want to attract all of the American customers, because We think we have a different option and can be extremely successful in the United States,” added Emmanuel Bret.
Is VinFast’s battery rental model suitable for Americans?
However, according to Techcrunch, Although VinFast is planning to open at least 60 showrooms across the US, will adding battery rental prices to VinFast’s car purchase packages make the entire process of buying electric cars for customers more complicated? still a question mark, especially if customers are in areas where it is difficult to exchange batteries.
The plan could be even more complicated as VinFast said that by the end of 2023, 50% of the batteries will be rented out while the remaining 50% will be sold with the purchase of the car. According to Techcrunch, VinFast has not yet responded to this issue.
VF 8 will come with the first 2 battery versions with a maximum range of 260 miles for a full charge and 292 miles for the Eco version, 248 miles and 277 miles for the Plus version. Acceleration from 0-60 mph is estimated in 5.8 seconds for the Eco version and 5.3 seconds for the Plus version.
The price for the VF 8 Eco in the US market is 40,700 USD for battery version 1 and 41,000 USD for battery version 2. With the VF 8 Plus, the corresponding price for two battery versions 1 and 2 will be 47,700 USD respectively. and $48,000.
VF 9 will launch in the US market with the first 2 battery versions with a maximum range of up to 272 miles and 369 miles on a full charge on the Eco version, 262 miles and 360 miles on the Plus version. The VF 9 Eco and Plus both have the same 0-60 mph acceleration in about 6.3 seconds.
The price of the VF 9 Eco in the US market is $ 55,500 for battery version 1 and $ 56,000 for battery version 2. Similarly, the price of VF 9 Plus for 2 battery versions 1 and 2 is $ 60,500 and $ 60,500 respectively. 61,000 USD. Battery version 1 will launch in the US market in 2022 and version 2 will start to hit the market from 2023.
Along with product and price information, the representative of Vietnam’s leading car company also officially announced the battery rental policy in the US market. Accordingly, this unit will bring 2 subscription packages for customers to choose from: Fixed Package and Flexible Package. The Flexible Plan is for low-travel customers, with a monthly subscription of $35 for the VF 8 and $44 for the VF 9. This rate applies to 310 miles of travel per month. From mile 311 onwards, the battery rental cost per mile is about $0.11 for the VF 8 and $0.15 for the VF 9.
The price of a fixed monthly subscription for the VF 8 is $110 and the VF 9 is $160, with no mileage limit. In particular, customers who order VF 8 and VF 9 in 2022 and use the Fixed subscription plan will enjoy the same lifetime battery subscription price. This policy is also automatically applied to the new owner after the vehicle is sold.
According to data from the Federal Highway Administration of the US Department of Transportation, the average distance traveled by a driver in this country is more than 1,000 miles per month.
Therefore, Techcrunch said, for consumers in the US, choosing a fixed rental package may be a better option. For a fee of $110 and $160 per month for the VF 8 and VF 9, respectively, customers can go without limitations on distance traveled. VinFast is currently listing the monthly cost of fixed rental packages throughout the vehicle’s life to encourage new orders.
“By separating the battery price from the cost of buying a car, VinFast assumes all risks related to the vehicle’s battery and ensures a fair price for its products, and at the same time gives customers peace of mind about their products. battery quality during use”, VinFast said.
VinFast said that it will provide a lifetime battery warranty including all battery maintenance and repair costs, and will replace the battery for free when the charging capacity drops below 70%.
Also at NYIAS 2022, VinFast activated the VinFirst NFT exchange program on Open Sea. The automaker is using blockchain technology to record orders and claim ownership as part of a global reservation program that began in January. When customers deposit to reserve their seats, they will receive NFT on VinFast’s platform.
Since April 2022, customers who have made a deposit can trade VinFirst NFT on the OpenSea trading market – one of the largest NFT exchanges in the world. In addition, VinFast also introduced a collection of NFT 3D animation (3D animation) co-designed with House of Kibaa, one of the first Metaverse companies in the world.