VinFast, the Vietnamese electric carmaker, made its first completed sales outside of Vietnam as it delivered its first 45 cars to customers in California on Wednesday.
A subsidiary of conglomerate Vingroup JSC, VinFast had shipped 999 vehicles into California. However the company required over two months of costly fitting to prepare them for delivery.
Early reservation holders expressed anger and frustration when it was revealed the initial shipment of VF8 vehicles would not have the range the company had promised in marketing.
The company was forced to slash its lease price on the VF8 electric crossover by 50%.
The company also abandoned an early plan to let customers rent the battery of the electric vehicle, which it had been advertising as a way to bring down the cost of ownership of the vehicle.
The company also announced on Wednesday that the version of the vehicle it has rebranded due to the limited range, the VF8 City Edition, would have a battery range of 207 miles.
US Bancorp will be making the first vehicles available for lease, according to VinFast. The vehicles have yet to receive a National Highway Safety Administration (NHTSA) safety rating.
The company has indicated it believes the lease will qualify for a subsidy of up to $7,500 under the Biden administration’s incentive program, which will be paid to the financing company. The company has not yet received its certification to take part in the subsidy.
As the company is entering the market to compete against established carmakers, led by Tesla, those carmakers are bringing a surge of new vehicles into the market as they drive prices down.
In addition, demand may be beginning to lag, especially for new brands. Quarterly results from electric vehicle startups Lucid, Rivian and electric semi truck maker Nikola all showed pressure from low orders, higher interest rates, and the high levels of competition.
James and Christine Wang, who were taking possession of a VF8 they reserved earlier in the year at the company’s Marina Del Rey store, said, “We’re early adopters, we like to try things out.”
VinFast has noted that insurers including State Farm, Allstate and Progressive will provide policies for the new model.
Autonomy, a vehicle subscription service, has agreed to purchase 2,500 vehicles from VinFast, according to an announcement by the companies last year. Autonomy has not said when it expects to take delivery.
Vinfast merged its US and Canadian operations earlier this year, cutting dozens of jobs in the process in an effort to cuts costs as vehicle deliveries stalled.
The company has plans for a $4 billion manufacturing plant in North Carolina, but is still waiting for final regulatory approval.