VinFast Auto announced it has set itself a target of selling 300,000 vehicles globally in 2026, as it continues to push into overseas markets with new models. The Vietnamese battery electric vehicle (BEV) manufacturer saw its global sales more than double to 196,919 vehicles last year, up from 97,399 units in 2024, driven mainly by strong growth in its domestic market. The company’s sales in Vietnam almost doubled to 175,099 units in 2025, accounting for almost one-third of the 564,000 light vehicles sol ...

Group 1 - VinFast Auto delivered 196,919 vehicles globally in 2025, marking a 102% increase from 97,399 units in 2024 [1] - The company also delivered 406,498 e-scooters and e-bikes in 2025, representing a 473% increase over 2024 [1] - Local sales in Vietnam nearly doubled to 175,099 units in 2025, accounting for about one-third of total vehicle sales in the country, with the total market exceeding 550,000 units [2] Group 2 - VinFast sold 21,820 vehicles overseas in 2025, having established local production in India and Indonesia while expanding in other Asian markets, Europe, and the US [3] - Indonesia was the largest overseas market with 10,890 deliveries, primarily from imports before the local assembly plant began operations in December 2025 [4] - The company introduced the Limo Green battery-powered MPV in August 2025, which became the best-selling model in Vietnam, while the compact VF3 remained the top seller with 44,585 deliveries [5]

Financial Data and Key Metrics Changes - In Q3 2025, total revenues reached RMB 21.8 billion, an increase of 16.7% year-over-year and 14.7% quarter-over-quarter [23] - Vehicle sales amounted to RMB 19.2 billion, up 15% year-over-year and 19% quarter-over-quarter, driven by higher deliveries [24] - Overall gross margin improved to 13.9%, compared to 10.7% in Q3 last year and 10% last quarter, reflecting higher vehicle margins and better profitability in parts and services [25] - Non-GAAP operating loss narrowed by 30% quarter-over-quarter, with positive operating cash flow and free cash flow generated in Q3 [8][27] Business Line Data and Key Metrics Changes - The company delivered 87,071 smart EVs in Q3 2025, representing a year-over-year growth of 40.8% [4] - The ONVO L90 delivered over 33,000 units in three months since its launch, leading the large battery electric SUV segment [11] - The All-New ES8 surpassed 10,000 deliveries within 41 days, becoming a top seller in the premium large three-row SUV segment [10] Market Data and Key Metrics Changes - In October, the company delivered 40,397 smart EVs, up 92.6% year-over-year, marking three consecutive months of record-high deliveries [6] - The penetration rate of battery electric vehicles (BEVs) in the premium segment increased from 12% last year to 18% in Q3 2025 [65] - The sales volume of BEVs in the large three-row SUV market ranked first for the first time in September and continued in October [67] Company Strategy and Development Direction - The company remains committed to a battery electric vehicle roadmap featuring chargeable, swappable, and upgradable batteries [9] - A multi-brand sales and service system is in place, with a focus on expanding the ONVO brand to cover a broader range of price segments [19][102] - The company plans to launch three new large models next year, aiming to achieve a monthly delivery rate of 50,000 units in the first half of next year [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving quarterly break-even in Q4 despite challenges from the phase-out of trade-in subsidies [30] - The company anticipates a vehicle gross margin of around 18% in Q4, with significant growth expected for the ES8 [34] - Management noted that the purchasing tax changes will have limited impact on the company due to the high percentage of users opting for battery subscriptions [49] Other Important Information - The company completed a total of $1.16 billion in equity financing in September, strengthening its balance sheet [17] - The global charging and swapping network now operates 3,641 power swap stations, providing over 92 million swaps [16] - The company has been supporting the NIO Cup Formula Student Electric China since 2015, cultivating young professionals for the industry [18] Q&A Session Summary Question: Break-even target and delivery guidance - Management remains confident in achieving quarterly break-even in Q4 despite a lower delivery guidance of 120,000-125,000 units due to market challenges [30][32] Question: Volume targets and new model schedule - Management expects to achieve a monthly delivery rate of 50,000 units in the first half of next year, with three large models launching [42] Question: 2026 outlook and purchasing tax impact - The company anticipates limited impact from the purchasing tax changes, as most users subscribe to battery services, maintaining a competitive edge [47][49] Question: R&D expense allocation and efficiency - R&D expenses are expected to remain around RMB 2 billion per quarter, with a focus on improving efficiency without compromising competitiveness [52] Question: Margin drivers in Q3 - The vehicle gross margin improvement in Q3 was driven by cost reductions and the sales of high-margin products like the L90 [81] Question: Chip joint venture with Accelra - The joint venture aims to leverage chip design capabilities and sell solutions to other clients, with opportunities in both automotive and non-automotive industries [84] Question: Overseas expansion strategy - The company is shifting to a partnership-based model for global market entry, starting with the Firefly brand [98] Question: Future product launches under ONVO brand - The ONVO brand will expand its product range to cater to the mass market, targeting price segments from RMB 100,000 to 300,000 [102]