VinFast Auto Ltd. Q3 FY2025 earnings call

• VinFast became the first Vietnamese automobile brand to surpass 100,000 vehicle sales in the first 3 quarters of a year, with 13 consecutive months as the nation's best-selling carmaker.
• In Q3, 38,195 EVs delivered, up 74% Y/Y and 7% Q/Q; first 9 months saw 110,362 EV deliveries, up 149% Y/Y. E-scooters/e-bikes delivered 120,052, up 535% Y/Y and 73% Q/Q.
• R&D investments focused on vehicle platform, electrical/electronic architecture, and autonomy. The company unveiled a product innovation and R&D road map with 3 brands: VinFast (smart EVs), Green series (EV solutions for commercial), Lac Hong series (ultra-luxury).
• Market updates: Vietnam saw VinFast Vietnam volumes grow 82% Y/Y; CKD factory in India commenced operation; in Indonesia, VinFast ranked 5th among BEV brands YTD; Philippines introduced residual value guarantee and expanded battery subscription; U.S. opened first dealership in California; Europe debuted at Busworld Brussels; Middle East announced strategic partnership for roadside assistance.

In the third quarter of 2025, VinFast delivered 38,195 EVs, representing a 74% year-over-year increase and 7% quarter-over-quarter growth. For the first 9 months of 2025, 110,362 EVs were delivered globally, a 149% year-over-year increase. VX 3 and VX 5 together contributed 47% of total EV deliveries, while the Green series accounted for 25%. In the e-scooter and e-bike segment, 120,052 units were delivered, a 535% year-over-year increase and 73% quarter-over-quarter growth. The number of EV deliveries to related parties, including GSM, represent 26% of total deliveries, while e-scooter deliveries to related parties, including GSM, accounted for less than 1% of total volume.

• 2025 guidance is to at least double volumes. Plans to release 2026 guidance early next year, expecting strong growth due to volume expansion for economies of scale. North Carolina manufacturing facility planned to be SOP by 2028.
• In 2026, target 1.5 million 2-wheelers delivered in Vietnam alone, accounting for about 60% of total new sales in Vietnam.

• Gross margin negatively impacted by timing difference in revenue recognition (cost of goods sold recognized before revenue). Higher warranty costs in U.S. and Europe due to shift to third-party service workshops. Market dynamics and regulatory challenges in international markets could affect growth.

Q: What's the expected timeline and cost expectations for developing autonomy stack?

A: Plan to launch low-cost version for robotaxi in 2026, around 2028 for others. Developed both internally and leveraging suppliers.

Q: Percent of sales in Q4 expected to come from outside Vietnam?

A: Slight increase from previous 3 quarters, with ramp-up from India, Indonesia, and others.

Q: How much will R&D increase for new platform?

A: This year targets $1.6 billion in CapEx and R&D, with most spending already done for new platform, and R&D expected to normalize from 2027.

Q: Will ASP need to be much lower to achieve 2025 volume guidance?

A: ASP expected to remain roughly flat, with higher ASP from VF 6, VF 7 offset by slightly lower ASP from Green series.

Q: Update on North Carolina facility?

A: Still plan to have SOP by 2028, with more updates on resumption of construction in 2026.

Q: How is battery cost trending?

A: Battery costs have continued to decline quarter-over-quarter, down ~10-12% Y/Y, transitioning to new cost-efficient battery generation.