Can VinFast make EV battery subscriptions a thing? – TechCrunch

At the New York International Auto Show on Wednesday The Vietnamese automaker VinFast unveiled battery subscription prices for the two electric SUVs to be sold in the US market by the end of the year.

The company recently Invested $2 billion to build its first US factory in North Carolina, also announced a partnership with Electrify America that will provide its customers with access to a national fast charging network. VinFast has hinted at other similar partnerships to be announced in the future.

VinFast’s battery leasing model involves the sale of its vehicles – the VF 8, a mid-size 5-passenger SUV, and the VF 9, a 7-passenger SUV – without the included battery pack. Instead, customers can lease the battery for a monthly fee based on the number of miles driven. This model could help make its vehicles more accessible, the company says.

It also has the potential to extend the life cycle of the vehicle itself. The Taiwanese company Gogoro, the recently went public via a dedicated acquisition merger, has popularized its battery swapping ecosystem for electric motorcycles and mopeds in Taiwan, in large part because it’s easy to swap out a battery rather than waiting for it to be charged. However, batteries are often the first component of a vehicle to die, allowing vehicles to stay on the road longer if they can be easily replaced instead of the entire car.

However, it’s not clear if adding this layer to the VinFast equation will make the whole process even more confusing for EV buyers, especially if they’re in a region where it’s difficult to trade in a battery, even though VinFast does plans to opening at least 60 stores in the US

The scheme may become more complicated, as VinFast says that by the end of 2023, 50% of the battery will be rented out, while the rest will be for sale along with the car’s purchase. VinFast did not respond to requests for clarification in a timely manner.

The VF 8 will cost between $40,700 and $48,000 depending on features and battery, the company said Wednesday, updating previous numbers shared at CES in January. The battery of the VF 8 Eco version can travel up to 292 miles on a full charge and the Plus version up to 440 km.

The VF 9s have a price range of $55,500 to $61,000. The Eco version of the battery has a maximum range of 369 miles, and the Plus version can go up to 360 miles, VinFast said.

It’s not yet clear if vehicle prices will change if a customer opts for battery leasing.

VinFast offers a flexible plan of $35 per month for the VF 8 and $44 for the VF 9 for drivers who can earn 310 miles each month. If you exceed 310 miles, there is a charge of $0.11 and $0.15 per additional mile for the VF 8 and VF 9, respectively.

Corresponding Data According to the US Department of Transportation’s Federal Highway Administration, the average person drives over 1,000 miles each month.

So for the average American driver, the fixed lease might be the better option. For $110 per month and $160 per month for VF 8 and VF 9 respectively, customers can have unlimited miles. VinFast is currently freezing the monthly cost of the fixed plan over the life of the vehicle to encourage new orders, the company said.

“By separating the price of the battery from the purchase price of the car, VinFast takes on all the risks related to the vehicle battery and ensures a reasonable price for its products, while customers have the assurance of the quality of the battery during use. ‘ the company said in a statement.

VinFast said there would be a lifetime battery warranty that would cover all battery maintenance and repair costs, and would replace the battery for free if the charge capacity drops below 70%.

At the auto show, VinFast also activated its VinFirst NFT exchange on the open sea. The automaker is using blockchain technology to record orders and confirm ownership under a global reservations program that began in January. When customers pay a deposit for their reservation, they receive an NFT on VinFast’s platform.

Can VinFast make EV battery subscriptions a thing? – TechCrunch Source link Can VinFast make EV battery subscriptions a thing? – TechCrunch

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