The electric car segment under $40,000 in the US will heat up in the near future when Volkswagen will bring cars to compete.
Not long ago, VinFast held a meeting with future distributors in the US. On this occasion, veteran car industry expert in the US, Mr. Duke Hale, also commented on the products that VinFast will bring here.
Mr. Duke Hale predicts that VinFast VF 6 and VF 7 will cost 30,000 USD (730 million VND) and 37,000 USD (900 million VND), respectively. According to him, these two car models are planned in a very favorable location with prices under 40,000 USD (973 million VND).
It is known that expert Duke Hale is also a consultant for VinFast in the US market.
One thing worth mentioning is that electric vehicle sales in the US are showing signs of decline. Considering the overall situation, electric vehicles are still growing, but the growth rate is clearly slow when compared to last year's speed. One of the reasons given is because most of the Early Adopters customer group already has their own cars, companies that want to increase sales need to convince another customer group - Early Majority.
While the Early Adopters group is willing to experiment with new technology and doesn't mind minor bugs when the product is newly developed, the Early Majority group has very different requirements. According to experts, Early Majority is more realistic and rational. To sell cars to this group, companies need to have products at more affordable prices.
In fact, affordable electric cars are a segment that many car manufacturers are focusing on.
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Tesla has repeatedly revealed plans to produce a smaller car model than the Model 3, priced at about 25,000 USD (608 million VND). Compared to the Tesla Model 3, the Model 2 will have a traveling distance and capacity suitable for those who only travel within the city; Meanwhile, Tesla Model 3 has the same capacity as a sports car, the maximum travel distance per charge is about 500 km, making the car somewhat redundant compared to daily travel needs in the city.
Not only Tesla, Volkswagen is also developing small electric cars to suit the needs of people who need a vehicle to go on the street. These are the Volkswagen ID.1 and ID.2all with expected prices of 20,000 USD (about 486 million VND) and 27,000 USD (656 million VND), respectively.
In the US, Volkswagen - Europe's largest car company in terms of sales - recently revealed plans to sell a new electric car model for less than 35,000 USD (851 million VND).
Although electric vehicles in the US are showing signs of cooling down, vice president and chief strategy officer of Volkswagen Group in the US, Reinhard Fischer, said: "We will continue to expand."
Talking to Reuters, Mr. Fischer also said that the electric car model priced under 35,000 USD will be produced in the US or Mexico; Along with that, the batteries used on the car will also be produced in the region. This is to match the criteria for receiving assistance under the US IRA law.
With IRA, customers who buy car models that meet the criteria will receive support from the US government of up to 7,500 USD, making electric cars more attractive compared to cars using internal combustion engines.