Vietnam’s VinFast taps Africa via Ghana

Vietnamese automaker VinFast is partnering with Ghana’s Jospong Group to distribute its electric vehicles (EVs) in West Africa, marking the company’s entry into a fourth continent with the aim of having its EVs in 50 markets by the end of the year, Nikkei Asia reported on Monday.

Despite Africa’s relatively small EV market, VinFast is optimistic about its diverse lineup of electric cars, e-scooters, e-bikes, and electric buses. The company’s six SUV models range in price from $19,500 to $79,800.

A 2022 survey revealed that over half of Ghana’s buyers prefer electric vehicles and would not spend more than $20,000, indicating potential for VinFast’s entry into the market.

VinFast’s expansion into West Africa follows recent moves into North America, Europe, and Asia, including a distribution deal in Oman, a new factory in India, and launches in Indonesia and Thailand.

Despite these international steps, experts suggest that the impact on VinFast’s overall battery EV sales may be modest in the short term. The company, a subsidiary of Vietnam’s largest conglomerate Vingroup, delivered 34,855 electric cars globally last year, with the majority going to its taxi affiliate.