VinFast Auto Ltd. ((VFS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for VinFast Auto Ltd. painted a picture of a company on a robust growth trajectory, marked by significant achievements in vehicle sales and international expansion. While the company celebrated milestones in markets like India and Indonesia, challenges such as negative gross margins and high operating expenses, coupled with market instability in the U.S., were also highlighted.
Record Vehicle Sales Milestone
VinFast proudly announced that it became the first automobile brand in Vietnam to surpass 100,000 vehicle sales within the first three quarters of a single year. This achievement underscores their dominance as the nation’s best-selling carmaker for 13 consecutive months.
International Market Expansion
The company made impressive strides in international markets, with sales in India exceeding internal forecasts, placing VinFast within the top 8 for EV registration in the country. In Indonesia, they captured approximately 5% of the BEV market, marking a strong entry.
Strong Growth in E-Scooter Deliveries
VinFast reported a remarkable 535% year-over-year increase in e-scooter and e-bike deliveries, totaling 120,052 units. This growth also represented a 73% increase quarter-over-quarter, highlighting their expanding footprint in the electric mobility sector.
R&D Investment Focus
The company is heavily investing in research and development, focusing on vehicle platforms, electrical and electronic architecture, and autonomy. These investments are aimed at enhancing VinFast’s long-term competitiveness in the global market.
Revenue Growth
VinFast achieved a total revenue of USD 719 million, marking a 47% increase year-over-year and a 9% increase quarter-over-quarter. This growth reflects the company’s expanding market presence and product offerings.
Negative Gross Margin
Despite the revenue growth, VinFast reported a negative gross margin of 56.2% in Q3 2025. This was attributed to delayed revenue recognition and higher warranty costs in the U.S. and Europe, presenting a financial challenge.
Challenges in U.S. Market
VinFast is facing challenges in the U.S. market due to tariff situations and instability in the EV sector. Consequently, the company does not plan to open more dealerships in the U.S. until market conditions stabilize.
High Operating Expenses
The company reported SG&A expenses of USD 172 million, a 27% increase quarter-over-quarter and a 25% increase year-over-year. This includes an impairment charge of USD 49 million, indicating rising costs as the company scales its operations.
Forward-Looking Guidance
Looking ahead, VinFast provided robust guidance for the future. The company aims to at least double its 2025 volumes, with a continued focus on innovation through R&D investments. Financially, VinFast maintains a liquidity position of USD 3.7 billion to support growth and expansion plans over the next 18 months. International expansion remains a priority, with significant developments planned in India, Indonesia, and the Philippines, alongside new product introductions and enhancements to their green mobility ecosystem.
In conclusion, VinFast Auto Ltd.’s earnings call highlighted a company experiencing significant growth and expansion, particularly in international markets. While challenges such as negative gross margins and high operating expenses persist, the company’s forward-looking guidance and strategic investments in R&D and international markets position it well for future success.