Photo: VinFast / Courtesy
Emerging electric vehicle manufacturer VinFast vehicles have already been promised for sale in the US by the end of this year. However, The Vietnamese automaker is taking a unique course in the market by separating the cost of batteries and making them available only by subscription.. Yes, batteries are not included.
Two price plans for VinfFast batteries
On the recent announcement of a US plant, at the New York Auto Show on Wednesday, the auto announced battery subscription prices for its Fully electric VF 8 and VF 9 SUVsas well as updated model prices. There are two battery pricing structures for both models, the Flexible Plan for more casual drivers and an unlimited Fixed plan for heavier users..
Why does VinFast do this?
Batteries are the most fixed cost in electric vehicles, and The company hopes that by separating the cost of the vehicle package, customers will find the price of the company’s vehicles more attractive. In addition, by taking responsibility for the battery, VinFast also hopes to avoid customer concerns about package degradation and maintenance costs.
Subscription prices for VinFast VF 8 and VF batteries
This is when things get a little complicated. The monthly cost of the Flexible Plan is $ 35 for the FV 8 with five smaller seats and $ 44 for the VF 9 three-tier, which has a larger battery. That’s the monthly rate for the first 310 miles traveled. Starting at 311 miles, the subscription fee is about 11 cents for VF 8 and 15 cents for VF 9 per mile. That means if a VF 8 owner drives an extra 300 miles per month, they spend an extra $ 33, or $ 68 for 610 miles in one month. Similarly, a VF 9 user would spend an extra $ 45 or $ 89 in total on 610 miles of driving in a month.
It seems safe to assume that VinFast’s fixed monthly unlimited range plan will become more popular, as these packages are still affordable at $ 110 for the VF 8 and $ 160 for the VF 9. As long as charging is affordable and fast, it’s an attractive market, especially in a $ 4 per gallon world for gasoline.
Electrify America is VinFast’s charging partner
Electrify America is the automaker’s newly announced official charging partner, a company whose fast – growing network has been serially criticized for inconsistent service. What’s more, the agreement only requires new VinFast owners to receive two free charging sessionsfar less than the welcome benefits of other automakers that often include long months of free charging.
This subscription price is guaranteed for those who reserve and deposit a 2022 model SUV, and interestingly, the lease is also transferable to the next owner, should the initial buyer decide to resell their vehicle. In addition, the battery has a lifetime warranty with no maintenance costs, and VinFast promises to replace the battery when the package degrades below 70% usability.
This type of subscription / battery lease model has not been tested in scale in the US. French Renault has been successful with a similar scheme to its Zoe EV, but it is not yet clear how much American consumers will be interested in this type of arrangement. It’s a naughty bet.
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