Vietnamese EV maker VinFast continues expansion across India, Indonesia and the Philippines while managing rising costs and global growth investments.
Vietnamese electric vehicle maker VinFast is pushing its break-even target beyond 2027 as the company accelerates expansion across India and Southeast Asia while dealing with rising operating costs and continued global investment requirements.
According to Reuters, the Nasdaq-listed automaker is continuing its expansion into India, Indonesia and the Philippines even as it scales back some of its earlier ambitions in the United States and Europe.
The company, which transitioned to a fully electric vehicle business in 2022, had initially targeted profitability at the gross income level by 2024 before later shifting that goal to 2026. Sources familiar with the matter told Reuters that the revised timeline now extends beyond 2027 as VinFast continues investing heavily in international growth.
A VinFast spokesperson said analyst expectations currently point towards gross profit break-even around the 2027–2028 timeframe.
“There is a consistent view across our analyst coverage that gross profit breakeven could come into sight around the 2027–2028 timeframe,” the spokesperson said.
The company reported a net loss of nearly $4 billion last year as expansion costs continued to rise. At the same time, VinFast is targeting global deliveries of 300,000 vehicles in 2026, representing a 50% increase from 2025 levels. The company also expects e-scooter deliveries to rise 2.5 times, supported by a planned mid-year ban on petrol-powered motorbikes in central Hanoi.
India remains a strategically important market for VinFast as global EV manufacturers look to diversify manufacturing footprints and establish a stronger presence in fast-growing Asian markets. The company’s India plans are part of a broader trend of foreign electric vehicle and electronics manufacturers increasing investments across the country amid supply chain diversification and government-backed manufacturing initiatives.
VinFast has been expanding aggressively despite intensifying competition from Chinese electric vehicle manufacturers including BYD and Geely in its domestic market.
The automaker continues to rely heavily on financial support from founder Pham Nhat Vuong and parent company Vingroup. As of November 2024, pledged funding from Vuong and Vingroup to VinFast had reached $17 billion.
The spokesperson also said rising global fuel prices could support electric vehicle adoption over the medium term while scale expansion could improve the company’s profitability outlook.
Key Takeaways:
- VinFast has delayed its break-even target to beyond 2027
- The company continues expansion into India, Indonesia and the Philippines
- VinFast reported a net loss of nearly $4 billion last year
- Global vehicle delivery target for 2026 stands at 300,000 units
- India remains a strategic growth market for foreign EV manufacturers
Source: VinFast