This is the smaller VF 8 shown with the larger three row VF 9 in the foreground.
VinFast
Startup electric vehicle maker VinFast has already pledged to have vehicles for sale in the US by the end of this year. However, the Vietnamese automaker is taking a unique approach to the market by separating the cost of batteries and making them available exclusively via subscription. That’s right, batteries are not included.
Following its recent US plant announcement, the automaker announced battery subscription prices for its VF 8 and VF 9 all-electric SUVs and updated model prices at the New York Auto Show on Wednesday. There are two battery price structures for both models, the flexible tariff for occasional drivers and an unlimited fixed tariff for heavier users.
Why is VinFast doing this? Batteries are the biggest fixed cost in electric vehicles, and the company hopes that by separating the cost of the package from the vehicle, customers will find the prices of the company’s vehicles more attractive. In addition, by taking responsibility for the battery, VinFast hopes to also address customer concerns about battery degradation and maintenance costs.
Subscription prices for VinFast VF 8 and VF batteries
This is where it gets a little complicated. Monthly costs for the flexible plan are $35 for the smaller five-seat FV 8 and $44 for the three-row VF 9 with larger battery. This is the monthly rate for the first 310 miles. After the 311th mile, the subscription fee per mile is about 11 cents for the VF 8 and 15 cents for the VF 9. That means if a VF 8 owner drives another 300 miles in a month, they give an additional $33 or $68 for 610 miles in a single month. Similarly, a VF 9 user would spend an additional $45 or a total of $89 for driving 610 miles in a month.
Expect VinFast’s unlimited range monthly fixed plan to be more popular as these packages are still fairly cheap at $110 for the VF 8 and $160 for the VF 9. Providing recharging is both accessible and fast, that’s an attractive proposition, especially in a world of $4-a-gallon gasoline.
However, the stability and convenience of Vinfast’s charging network feels like a wild card. The automaker’s just-announced official charging partner is Electrify America, a company whose fast-growing network has been serially damaged over its inconsistent service. Additionally, the deal stipulates that new VinFast owners will only get two free charging sessions — far fewer than other automakers’ welcome treats, which often include many months of free charging.
This subscription price is guaranteed for those who reserve a 2022 model year SUV and pay a deposit, and interestingly, the lease is also transferrable to the next owner should the initial buyer wish to resell their vehicle. In addition, the battery has a lifetime guarantee with no maintenance costs, and VinFast is committed to replacing the battery when the battery usability drops below 70%.
This type of battery subscription/lease model has never been tried on a large scale in the US. France’s Renault has had some success with a similar scheme for its Zoe EV, but it remains unclear how interested American consumers will be in this sort of deal. It’s a bold gamble.
Prices for VinFast VF 8 and VF 9
The cost of the battery subscription is, of course, in addition to the vehicle price. The automaker just released updated pricing for the 2022 VinFast VF 8 and VF 9. Both models are available in the two equipment lines Eco and Plus with different standard equipment. Confusingly, both models also come with two different available battery capacities and resulting range estimates, albeit at oddly minimal price differences:
VF 8 Eco Battery Version 1 (260-mile range): $40,700
VF 8 Eco Battery Version 2 (292-mile range): $41,000
VF 8 Plus Battery Version 1 (248-mile range): $47,700
VF 8 Plus Battery Version 2 (277-mile range): $48,000
VF 9 Eco Battery Version 1 (279-mile range): $55,500
VF 9 Eco Battery Version 2 (369-mile range): $56,000
VF 9 Plus Battery Version 1 (262-mile range): $60,500
VF 9 Plus Battery Version 2 (360-mile range): $61,000
*Note: The final delivery cost of all models will be higher because VinFast has not yet announced the destination fees for the above models.
To underscore the above, this means there is a paltry $300 difference between VF 8 trims with significantly different ranges, or $500 on the VF 9 where the range difference can be as much as 98 miles. Why on earth would anyone go for a battery version 1 of either model? Why would an automaker go to the trouble and expense of developing two different battery versions with such minimal price differences?
If you’re considering buying a VinFast but the idea of ”batteries for rent” turns you off, the automaker says it will allow you to purchase a battery with a vehicle in the future, just like any other manufacturer. The company expects to offer a 50/50 split between models with battery subscriptions and models with battery sales after the end of 2023.
2022 VinFast VF 9 is a three-row electric SUV with style
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