EV maker VinFast's Q1 loss widens on higher spending as deliveries rise
VinFast
reported on Monday its sixth consecutive quarterly net loss as it continues to ramp up spending to boost sales volumes.
VinFast reported a net loss of $712.4 million for the first quarter, less than the $1.3 billion loss in the previous quarter but 20% more than a year earlier. Analysts' average forecast was for a $616.3 million loss, according to LSEG data.
Revenue jumped 150% to $656.5 million in January-March, compared with analysts' average estimate of $520 million.
Deliveries leapt nearly 300% to 36,330 vehicles in the quarter, mainly driven by sales in Vietnam, its biggest market.
VinFast shares were up 10.53% in pre-market trade.
Backed by Vietnam's largest conglomerate, Vingroup, VinFast continues to face challenges due to weak consumer demand, stiff competition, and a 25% tariff the U.S. has imposed on imported vehicles. VinFast previously identified the U.S. as a key growth market.
The company reported a gross margin of minus 35.2% in the quarter, compared with minus 58.7% a year earlier.
The firm is intensifying promotional efforts domestically, shifting to a dealership model from the costlier option of its own showrooms, and redirecting its focus to
Asia
, with its new assembly plant in India set to begin operations in July.
Research and development expenses fell 22.3% year on year in the quarter, while the cost of sales more than doubled over the same period, it said.
VinFast, which has reported a loss every quarter since it went public in August 2023, has received around $2 billion in financial support from its founder and CEO Pham Nhat Vuong and Vingroup, as of May.
ELECTRIC BUSES
VinFast's affordable, small VF 3 and VF 5 models were its best-selling vehicles, accounting for 68% of its domestic deliveries, chair
Thuy Le
said on an earnings call.
The company is also looking to expand in the bus market.
"We are exploring opportunities in Asia and
Europe
with plans to offer electric buses in 6, 8, 10, and 12 meter sizes," Le said.
"We set up in Indonesia and Europe already and very soon in the
Middle East
and the U.S.," Le said, noting that VinFast already delivered buses in big volumes in Vietnam.
The company said it would introduce its next-generation platform and an electrical architecture with the
Limo Green
model in the third quarter. This will underpin existing EV models next year.
"While its VF3 subcompact SUV is driving volumes, the company is still losing money on every car it sells," research firm Third Bridge noted in a pre-earnings report.
"The bill of materials is estimated to be significantly higher than those of
Tesla
and
BYD
, partly because VinFast lacks scale and still pays a premium to suppliers who are wary of its short track record," it said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
12 hours ago
- Economic Times
AI news today: Reason behind rising techie layoffs, AI-altered version of 'Raanjhanaa' causes uproar and more
AI news today: Filmmaker Aanand L Rai has publicly criticised an AI-altered version of his 2013 film Raanjhanaa, calling it 'deeply upsetting.' His remarks come amid growing backlash over AI-generated re-releases in Bollywood. The altered version, reportedly featuring AI-modified visuals and voices of lead actors Dhanush and Sonam Kapoor, has triggered concerns among creators about consent and artistic AI continues to reshape global tech and business landscapes. OpenAI has reportedly hit $12 billion in annualised revenue, doubled from earlier this year, and is set to open its first European data centre in Norway in 2026. Microsoft's market valuation also surged past $4 trillion, powered by investor confidence in AI's future. However, a report by Indeed reveals that AI's rise is also being used to justify tech layoffs, even as job postings fall—down 36% from 2020 levels—highlighting the complex relationship between AI adoption and workforce disruption. Top news on AI are: "Deeply upsetting": Aanand L Rai calls out AI-altered version of 'Raanjhanaa'Amid the growing tensions over the AI-altered re-release of Dhanush and Sonam Kapoor starrer 'Raanjhanaa,' filmmaker Aanand L Rai has strongly voiced his opposition on social media. OpenAI Hits $12 b in Annual Revenue ChatGPT-maker OpenAI roughly doubled its revenue in the first seven months of the year, reaching $12 billion in annualised revenue, the Information reported on Wednesday citing a source. Microsoft valuation surges above $4 trillion as AI lifts stocks Microsoft surged above $4 trillion in market value early Thursday following strong earnings, as investor bullishness for artificial intelligence lifted major indices further into record territory. OpenAI to build its first European data centre in Norway, with partners OpenAI is launching its first Stargate data centre project in Europe, partnering with developer Nscale Global Holdings and investment group Aker ASA to open a $1-billion facility in Norway next year, the companies said on Thursday. Is AI causing tech worker layoffs? If you read the typical 2025 mass layoff notice from a tech industry CEO, you might think that artificial intelligence cost workers their jobs. The reality is more complicated, with companies trying to signal to Wall Street that they're making themselves more efficient as they prepare for broader changes wrought by AI. A new report Wednesday from career website Indeed says tech job postings in July were down 36% from their early 2020 levels, with AI one but not the most obvious factor in stalling a rebound.
&w=3840&q=100)
First Post
16 hours ago
- First Post
Trump tariff: Time for India to make manufacturing more competitive
On July 30, 2025, US President Donald Trump imposed a 25 per cent tariff on Indian exports to the United States, citing India's high trade barriers, its energy ties with Russia, and its continued participation in BRICS. Accompanying this was a vaguely defined 'penalty,' framed around India's strategic decisions rather than any immediate trade infraction. The timing of the announcement, on a day after Trump extended a tariff truce with China and praised Beijing for resuming rare earth exports, speaks volumes. India, the world's fastest-growing large economy and a constitutional democracy, is being penalised for its sovereign choices, while China, a geopolitical rival and the largest buyer of Russian oil, is being courted. This is the perfect archetype of Trumpian diplomacy, i.e., be tougher on friends than on adversaries. STORY CONTINUES BELOW THIS AD India exported $86.5 billion worth of goods to the US in FY25, an 11.6 per cent year-on-year increase, with imports standing at $45.3 billion. This yielded a bilateral trade surplus of $41.2 billion, the highest India has with any country. The exports most exposed to this tariff regime are concentrated in five sectors. Petroleum products, primarily refined fuels like diesel and jet fuel, accounted for over $20 billion. Pharmaceutical exports, comprising generics, vaccines, and active pharmaceutical ingredients, stood at $7.5 billion, supplying nearly 40 percent of U.S. generic drug needs. Gems and jewellery exports, mostly diamonds and gold, amounted to $8.5 billion. Smartphone exports crossed $3 billion in January 2025 alone, with India becoming the top supplier to the U.S. (44 percent market share). Textile and apparel exports added another $2.5 billion, heavily tied to MSMEs. Collectively, these five sectors account for over half of India's total goods exports to the United States. Despite the scale of these flows, the macroeconomic exposure is limited. Goods exports to the U.S. constitute just 1.85 per cent of India's GDP. Even a 30 per cent decline in U.S.-bound exports would shave off only 0.5 per cent of India's GDP, which should be a manageable impact. Moreover, this tariff is not unprecedented in Trump's economic playbook. Vietnam, despite signing a bilateral trade deal and eliminating over 99 per cent of tariff barriers on US goods, still faces a 19 per cent tariff. Importantly, the Indian rupee has depreciated 4 percent against the Vietnamese dong over the past five months, partially offsetting the competitive disadvantage. The net additional cost imposed on Indian exporters, after accounting for currency shifts, is roughly 2 per cent, a gap that could be neutralised through improvements in logistics, customs clearance, and compliance reforms. STORY CONTINUES BELOW THIS AD Where the Trump administration's action becomes most problematic is in the nature of the 'penalty'. It is not anchored in a specific trade violation or a WTO-compliant measure. Instead, it is framed around India's continued energy engagement with Russia, currently accounting for 22 per cent of its crude oil basket, and its role in BRICS. However, this logic collapses upon comparison. China, also a BRICS member, imported over 2.2 million barrels per day of Russian crude in 2024, more than India's 1.7 million barrels per day. Beijing has not only refused to align with Western sanctions but has actively become a conduit for re-exporting Russian defence components. Yet China is exempt from penalties and instead rewarded with economic détente. This glaring asymmetry reflects a strategic calculus. Apply coercion where resistance is unlikely and make examples of partners rather than adversaries. This is not new. For over a year, Trump has repeatedly attempted to bring Pakistan into the India-U.S. trade conversation. He has publicly claimed, more than 25 times, that he 'brokered peace' between India and Pakistan during Operation Sindoor, asserting that India scaled down its military posture in exchange for the promise of a trade deal. STORY CONTINUES BELOW THIS AD The Government of India has consistently and firmly rejected this claim, stating that the ceasefire was a unilateral and sovereign decision. The imposition of the 25 per cent tariff confirms New Delhi's version of events. Had India accepted a 'ceasefire-for-trade' conditionality, such a tariff would never have materialised. Trump's own actions disprove his narrative and further expose the hollowness of the opposition's domestic claims that India had conceded strategic ground. Most recently, Trump announced a prospective U.S.-Pakistan oil partnership, stating, 'Who knows, maybe they'll be selling oil to India someday!'. This is part of a broader strategy of using Pakistan as a wedge, resurrecting it as a pressure point even in non-security contexts. That a country with a long record of economic mismanagement and security concerns is being offered new deals while India faces penalties shows the deeply distorted incentives now driving American economic statecraft under Trump. It is being used as a lever to bring India on the table. To make India concede on areas on the trade front which it is seemingly 'protecting'. STORY CONTINUES BELOW THIS AD India's response must be measured, strategic, and grounded in long-term interests. First, India should facilitate market entry of our products in other geographies. We should double down on our FTA negotiations with the EU and the developed world. Second, India must accelerate structural reforms: logistics costs in India remain at 13 per cent of GDP compared to 8 per cent in OECD economies; port dwell times average three days, versus less than one in East Asia. Closing these gaps could yield 3-4 per cent efficiency gains, which would more than offset the tariff disadvantage. Third, India must engage with the United States, but only on its own terms. Regulatory sovereignty in agriculture, data, and digital services must be non-negotiable. India must resist any trade pact that threatens public health safeguards or opens floodgates to genetically modified imports. From a theoretical standpoint, Trump's coercive trade policy validates the concerns long raised by realist theorists in international political economy. While liberalism argues that trade promotes mutual benefit and institutional cooperation, the current situation reflects Robert Keohane and Joseph Nye's concept of 'asymmetric interdependence,' where economic ties become tools of pressure for the dominant partner. STORY CONTINUES BELOW THIS AD Trump's strategy is about enforcing geopolitical alignment through economic compulsion. It is also emblematic of a broader global shift, from rules-based multilateralism to transactional bilateralism. In such a world, strategic autonomy must be protected not just through military and diplomatic posture, but through resilient and competitive economic policy. India has to soon develop areas where it has strategic and comparative advantage. That is what allows China to trade its own terms. Regardless, India is not without strength. Its services exports, valued at $339 billion in FY25, have surpassed goods exports and are growing faster. Domestic consumption remains the primary driver of GDP, contributing close to 58 per cent of total output. Even if exports to the U.S. fall by 30 per cent, the overall impact on GDP would remain below 0.5 per cent. Moreover, India's strong foreign exchange reserves ($715 billion as of June 2025), diversified trading partners, and growing strategic convergence with key players in Europe and the Indo-Pacific provide room for manoeuvre. STORY CONTINUES BELOW THIS AD If coercion is the new language of trade, India must respond in the grammar of resilience, credibility, and reform. This has been a perpetual wish list of many, but India should make its manufacturing more competitive so that it can bear such shocks, however temporary they may be. Aditya Sinha (x:@adityasinha004) writes on macroeconomic and geopolitical issues. Views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Firstpost's views.
News18
18 hours ago
- News18
Trump's Tariff Deadline Is Here: Who Struck Trade Deals, Who's Still Waiting
In the lead-up to this deadline, Trump has already warned of a 25% tariff on Indian goods beginning August 1. US President Donald Trump has set a final deadline of August 1 for countries to reach new trade agreements with the US, following months of negotiations over tariffs. In the absence of a deal, the Trump administration is expected to impose a new wave of tariffs, potentially higher than those previously implemented. President Trump argues that these tariffs are essential to boosting domestic manufacturing and protecting jobs for American workers. In the lead-up to this deadline, Trump has already warned of a 25% tariff on Indian goods. While a few countries have managed to finalise trade deals with the US, the majority remain at risk of being subjected to harsher tariffs once the deadline passes. According to a report by CNBC, Trump claimed in a Time Magazine interview in April that he had finalised over 200 trade deals. Trade advisor Peter Navarro also stated at the time that it was feasible to close '90 deals in 90 days." However, as of July 31, the US has secured only eight trade agreements in the past 120 days. Countries That Have Reached Trade Deals with the US The United Kingdom has negotiated the most favourable terms so far, successfully reducing its tariff rate from 25% to just 10% following talks held on May 8. However, ambiguity still surrounds several product categories, including steel and aluminium, which are yet to be thoroughly addressed. Vietnam finalised a deal with the US on July 2, bringing its tariff rate down from 46% to 20%. Nevertheless, according to a Politico report, Vietnamese negotiators were aiming for a rate closer to 11% before Trump unilaterally announced the 20% figure. Indonesia reached an agreement on July 15, securing a revised tariff rate of 19%, down from the previously proposed 30%. The Philippines concluded negotiations on July 22, though their revised rate saw only a minor reduction, falling from 20% to 19%. Japan and South Korea also managed to reach agreements with the Trump administration, both successfully reducing their tariff rates from 25% to 15%. In addition to the tariff cuts, Japan has pledged to invest $550 billion in the US, while South Korea has agreed to invest $350 billion into ventures 'owned and controlled by the US." On July 27, the European Union reached a deal with the US, agreeing to a reduced tariff rate of 15%, down from the previous 30%. The European Commission expressed optimism about its ongoing partnership with the Trump administration. China's Ongoing Talks China has not yet finalised a deal with the US, though both sides remain hopeful. Recent negotiations in Stockholm concluded without resolution, but officials suggested that a truce extension is likely. The current deadline for US-China trade deal is August 12. Any decision on extending the truce or formalising a deal rests solely with President Trump. Countries Without Agreements Several key US trading partners remain without any formal trade deal. India is facing the imposition of a 25% tariff, along with an unspecified penalty. Canada could be subjected to a 35% tariff, while Mexico currently faces a 30% rate. Australia appears to be in a relatively safe position for now, with its tariff rate holding steady at 10%. Brazil, meanwhile, has drawn particular ire from Trump. The US President has threatened a 50% tariff in retaliation for what he calls 'unjust treatment" of his close ally, former Brazilian President Jair Bolsonaro. President Trump has already postponed the trade deal deadline several times, originally scheduled for April, then delayed to July, and now finalised for August 1. He has publicly declared that there will be no further extensions. However, with just hours to go, it remains to be seen whether last-minute developments will alter the course of this high-stakes global trade standoff. view comments First Published: July 31, 2025, 16:26 IST News world Trump's Tariff Deadline Is Here: Who Struck Trade Deals, Who's Still Waiting Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
