VinFast cars expected to be direct rival to Mercedes

24 Sep 2018



Commenting about VinFast’s car models, an expert said BMW technologies would be applied to VinFast’s undercarriage system, engine, interior and exterior equipment. 


The models have been designed by a studio from Italy, but their designs bear strong German style. VinFast’s interior could be considered a Vietnamese version of BMW, with familiar features such as gearshift and steering wheel.


The expert affirmed that with these features, VinFast’s products will be valued at no less than VND1 billion. One BMW 5-Series has the starting price of $52,000, or VND1.2 billion, in the US.


Mercedes Benz Vietnam (MBV) would be the direct rival for VinFast’s products. Mercedes is the luxury car manufacturer with the best sales in Vietnam with revenue mostly coming from C-Class (sedan) and GLC (SUV). 


With 14 authorized resellers and service centers throughout the country, MBV has the largest sale agent network among luxury car manufacturers. As for VinFast, the manufacturer has the distribution network it inherited from GM Vietnam. 


The network has 22 agents, or 50 percent more than MBV. Being in the real estate market and construction industry, VinFast will not find it difficult to expand its distribution network.


The second big advantage that VinFast has is the availability of spare parts. An area within VinFast’s factory in Hai Phong City makes spare parts and components that will be competitive as they don’t have to bear import costs and can enjoy tax incentives. Mercedes’ spare parts must be imported from Europe.


In general, car manufacturers begin applying new advanced technologies on luxury products first, and later on less expensive  models.


Touch key, for example, was applied to BMW 7-Series first and later to 6-Series and 5-Series. High-resolution dual screens first appeared on S-Class, and then A-Class.


The heavy investments by Vingroup in VinFast in branding and designing car models show that the Vietnamese manufacturer is striving to build high-quality products. The leaders at VinFast once held high positions at GM.


Vo Quang Hue, Vingroup Deputy CEO-Automotive, told the local media at a recent interview that VinFast factory will have 1,200 remote-controlled robots operating on nights and weekends. Its welding factory is expected to be the most modern fully-automated car body welding factory in Southeast Asia.


Source: VietNamNet Bridge

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