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“If it ain’t broke, don’t fix it” is a common refrain, and it’s one that I believe in. Too often, people try to change things just for the sake of changing them, and eventually it backfires.
However, there are times when relying on the same strategy won’t work out in the long run. This appears to be the case for Vietnam’s top maker of electric vehicles, VinFast. While its largest buyer, Green and Smart Mobility (GSM), has been driving sales, there are signs this may not be enough as VinFast moves forward.
Today we look at:
- Why VinFast is changing gears
- Singapore’s government clarifying Nvidia’s financial report
- Other newsy highlights such a 22% increase in net profit for SingTel and Uber’s 0% commission model in India
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Life in the fast lane
Image credit: Timmy Loen
Vietnam-based EV giant VinFast has made a ton of revenue over the years by selling to GSM, which operates an electric taxi brand called Xanh SM. But GSM has been diversifying its business and may no longer be VinFast’s main growth driver.
- The whole gamut: Xanh SM has nearly 100,000 vehicles in its fleet, but its influence in the local EV sector may dwindle as the country’s taxi fleets become fully electrified. As such, Xanh SM expanded into two new markets – Laos and Indonesia – and aims to enter other countries as well. It also plans to scale further in Indonesia.
- On the rise: One thing to note is that as GSM grew rapidly, so did its burn rate. In 2023 alone, the company bought EVs and e-scooters for US$839 million and signed a US$419 million deal to secure additional units from VinFast. GSM’s continued sustainability will depend heavily on shareholder support and strategic considerations.
- Double or nothing: VinFast, on the other hand, has set an ambitious sales target to double its 2024 delivery numbers. This push is expected to be driven by some of its more popular models, such as the VF 3 and VF 5.
Read more: VinFast’s reliance on GSM for growth faces uncertainty
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Wasn’t us
Image credit: Timmy Loen
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