Vietnamese electric carmaker VinFast has slashed the lease price for its first model shipped to the United States by more than half for its first customers in California, with delivery beginning this week, according to the firm and emails to customers seen by Reuters.
VinFast, a subsidiary of conglomerate Vingroup JSC (VIC.HM), had said last month its first VF8 all-electric crossovers would be available to lease at a monthly payment of $599 for two years.
Its website indicated as of Monday a monthly lease price of $399 for the car for a 24-month lease.
VinFast told people who had already paid a refundable deposit on the vehicle that the payment would be $274 a month in California, the first U.S. state to receive the cars, according to messages to those prospective buyers seen by Reuters.
That equals to a discount of between 33% and 54% from the initially announced monthly lease price.
“This is our special offer to VinFast customers for the VF 8 City Edition models in order to stay competitive with other brands,” VinFast said in a statement.
“We will officially deliver the VF 8 City Edition vehicles to customers on March 1,” it said, without stating the number of units in the 999 batch shipped to California in late 2022.
The move reflects the latest sign of mounting price competition by EV makers. Tesla (TSLA.O), the global EV leader, slashed prices globally by up to 20% last month, although it has hiked prices on some models and in some markets by narrower margins since.
The Biden administration’s EV credits, which were enforced at the beginning of this year, have also changed the calculus for carmakers and U.S. consumers.
Electric vehicles like those built by Tesla in North America are eligible for a consumer tax credit of $7,500. Businesses, including the financial institutions that underwrite car leases, can also claim a credit of up to $7,500 for EVs if the vehicles are sold by one of the firms certified by the IRS.
VinFast was not listed among the 39 “qualified manufacturers” on the IRS list as of Monday.
VinFast said earlier in February that US Bancorp (USB.N) would offer lease financing for the firm’s sales in the United States.
Vehicle subscription service Autonomy has negotiated a deal with VinFast to buy 2,500 EVs, the firms said in November.
Buy Crypto NowIn another statement, VinFast’s chairwoman Le Thi Thu Thuy said VinFast expected to deliver EVs in Canada, Germany, France, and the Netherlands, following its deliveries in the U.S. market.
The VF 8 City Edition comes in both Plus trim and Eco with an EPA-rated range of 191 miles (307 km) and 207 miles (333 km) respectively, the company said.
The company has filed for an initial public offering in the United States and plans to set up an EV assembly facility in North Carolina.
