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Last Updated on: 9th May 2025, 11:27 am
Notable exceptions aside, 2025 is off to a good start for EV sales in Europe. The Vietnamese startup VinFast, for one, is looking to improve its balance sheet there. VinFast continues to rely heavily on its home turf for customers, but sales have lagged in Europe and elsewhere. Shifting gears from a direct-to-consumer model to a more traditional dealership model could help, or so the company anticipates.
VinFast Refocuses EV Sales On The Traditional Model
Direct-to-consumer EV sales were popularized by Tesla to great effect, but that business model is not a one-size-fits-all, as VinFast has discovered. The company is a branch of the sprawling Vietnamese conglomerate Vingroup. It started life in 2018 as Vietnam’s very first mass-production auto manufacturer, turning out ICE cars for its domestic market.
“The company’s output of gasmobiles for the local market already puts it ahead of several other imported brands for the first quarter of 2020, and it came in fifth overall, so it seems that local drivers are tuning into the idea of supporting Vietnam’s very own car factory,” CleanTechnica noted back in 2020.
Having fostered support from the Vietnamese auto-buying public, by 2020 VinFast was switching gears into electric mobility, including electric buses as well as electric cars and scooters, and it began reaching into overseas markets as well (see lots more VinFast background here).
Conditions are particularly ripe for expansion in Europe, now that the grip of market leader Tesla has slipped while overall EV sales continue to rise. That depends on whether or not VinFast can overcome some less-than-kind reviews of its vehicles earlier in its life, but they are determined to try. On May 8, VinFast announced that it signed its first dealership agreement in France, with ASTRADA SIMVA, which plans to open a showroom in Aix-en-Provence next month.
VinFast also announced that it has signed an agreement with the German auto dealer Schachtschneider Automobile GmbH, which plans to open three authorized VinFast showrooms. The new agreement follows VinFast’s previously announced agreement with the German dealer Autohaus Hübsch, which has opened two showrooms.
Boosting EV Sales With Service
VinFast is going up against a plethora of automakers eager to fill the EV sales opportunity in Europe as Tesla’s misfortunes continue to mount. They expect that a service-centered business model will give them an edge. Partnering with established dealers who already have a relationship with the public is a key part of the plan. It’s a two-way street, with VinFast investing time and money to help its dealer network put their best faces forward.
“Throughout the entire partnership, VinFast is committed to providing maximum support to its authorized dealerships through in-depth personnel training, equipping staff with robust product knowledge and maintenance/repair procedures, ensuring maximum peace of mind for customers,” VinFast explains.
“At all VinFast dealer showrooms operated by ASTRADA SIMVA and Schachtschneider Automobile, European consumers will be able to explore, test drive, and purchase the VinFast VF 6 (B-segment) and VinFast VF 8 (D-segment),” they add, with VF 8 being the mid-sized SUV now for sale at its European dealer network alongside the VF 6.
The service model follows VinFast’s plans for expansion in other markets around the world. “This collaboration with reputable European dealerships is part of VinFast’s strategy to develop an enhanced global dealership network,” the company elaborates. “This strategy aims not only to optimize operational efficiency and increase brand reach but also to rapidly address the growing demands of customers.”
VinFast Plans To Pump Up EV Sales In The USA
Despite a healthy dose of negative reviews in its early years, VinFast has also gotten credit for making improvements along the way. Back in 2022, CleanTechnica’s Kyle Field test-drove a pre-production iteration of the VF 8 in Vietnam and was reasonably impressed, though other opinions continue to vary.
VinFast’s solid reputation for safety features could help improve its EV sales profile in the US, where sales have been sluggish. VinFast is also aiming to re-calibrate its sales strategy here. On May 8, the company announced plans to close its existing direct-to-customer showrooms in California and replace them with a full dealer franchise model. “As of today, VinFast has already developed a network of 38 operational and to-be-operational dealers in 16 states across the US, including one dealer in California,” the company reported in its Q4 2024 EV sales report, posted last month.
Another factor that could help VinFast boost its US EV sales is a domestic factory. One was in the works as of 2023, when the company broke ground on a new EV factory in North Carolina. However, little work has occurred since then. VinFast has reportedly pushed its plans for the site back to 2028, reportedly with the aim of pumping up its EV sales in the US before committing to a domestic factory.
More EVs, More Choices
Whether or not VinFast cracks the EV sales market in the US, drivers here have seen their zero emission mobility options explode since the first mass-produced EVs hit the road during the Obama administration. The malevolently incompetent Commander-in-Chief who currently occupies the White House has been throwing monkey wrenches into the EV works, but that won’t stop the demand for cleaner, quieter cars.
The up-front cost of electric cars has been a stumbling block, but EVs generally win on total cost of ownership. Other benefits — such as using the EV battery for emergency backup power and access to electricity rate discounts — are also factoring into the EV sales picture.
CleanTechnica has also been keeping an eye on the fleet electrification movement, where bottom line considerations are the key motivating factor. Ford, GM, and Motiv are among the US automakers busily filling the demand for commercial vans. The electrification of heavy duty class 8 trucks has been more challenging, but activity is beginning to heat up in that area as well, with Mack Trucks being among the recent addition to the fold.
As for Tesla, even the bright spots are beginning to fade. In Norway, for example, the Model Y accounted for 866 units in April, making it the best selling vehicle in that country. However, the Volkswagen ID. Buzz was breathing down its neck at 811 units. Coming in a more distant but still respectable third was the ID.4 at 700 units.
Photo (cropped): VinFast is aiming to boost its EV sales profile in Europe and elsewhere with a shift away from the direct-to-consumer model and a new focus on traditionally-oriented auto dealerships (courtesy of VinFast).
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