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Home Feature News

VinFast tackles archipelago’s EV struggles over the last year

Syifa by Syifa
December 31, 2024
in Feature News, News, Sustainability
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VinFast

VinFast's office. (credit by the company's PR team)

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Heaptalk, Jakarta — VinFast, Vietnam’s Electric Manufacturer (EV), has taken bold steps this year to solidify its presence in Indonesia’s burgeoning EV market. 

Since entering the Indonesian market earlier this year, VinFast has made strides in accelerating EV adoption. From launching flagship models like the VF e34 and VF 5 to establishing a state-of-the-art assembly plant in Subang, the company’s moves underscore its commitment to localizing EV manufacturing. Its collaboration with V-GREEN and Prime Group to develop 100,000 EV charging stations nationwide is poised to address critical infrastructure gaps, enabling a robust ecosystem for EV adoption.

With an estimated investment of $1.2 billion, these stations will prioritize key urban hubs, such as Jakarta, Surabaya, and Bali, before expanding nationwide. Construction will begin in January 2025, targeting operational milestones by year-end. Such developments highlight VinFast’s long-term vision and strategic foresight in fostering Indonesia’s EV transition.

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World Ai Jakarta 2025

Technological Excellence: VinFast’s VF e34

As the first Vietnamese-designed EV to debut in Indonesia, the VF e34 combines affordability with advanced features. It offers cutting-edge technologies like adaptive cruise control, blind-spot detection, automatic emergency calls, and roadside assistance—making it a standout choice in its price segment. This model also includes consumer-centric options like a battery subscription plan, which lowers upfront costs, alongside a resale value guarantee of 73% within three years, showcasing VinFast’s innovative market positioning.

Silicon Valley veteran Bui Trong Hieu says the VF e34 represents a “technological breakthrough. ” It highlights VinFast’s capability to blend intelligent design with practicality, ensuring customer satisfaction and broad accessibility.

Sustainability-Driven Partnerships

As is known, VinFast’s subsidiary Xanh SM has officially launched its electric taxi service in Indonesia. In its early operation, the company aimed to operate about 10,000 EV taxis in 2025.

As is known, Indonesia is the third SEA country to welcome the Xanh SM expansion, following Vietnam and Laos. Officially operated in the archipelago, specifically in Jakarta, the entire fleet consists of VinFast’s VF e34 Limogreen electric cars, offering emission-free, noise-free, and fuel-odor-free rides. This ensures that every trip is comfortable, safe, and environmentally friendly. Besides operating in Jakarta, Xanh will expand to Bali as a further market expansion.

The company claimed that the partnership with Xanh SM extends its vision beyond EV manufacturing by integrating sustainable ride-hailing services into its strategy. Additionally, the Memorandum of Understanding (MoU) between V-GREEN and Prime Group emphasizes international trust in VinFast’s capability to lead Indonesia’s electrification efforts.

Despite the promising outlook, Indonesia’s EV market presents challenges, including low EV penetration, infrastructural gaps, and consumer hesitancy. VinFast’s dual strategy—combining premium products with affordable pricing and comprehensive after-sales services—sets it apart in navigating these hurdles. The company’s 10-year warranty and battery maintenance guarantees further reflect its commitment to long-term consumer trust.

“By integrating cutting-edge technology, robust partnerships, and a consumer-centric business model, the company is not just entering the Indonesian market but actively shaping its green mobility future.” the company said.

Tags: Electric VehiclevinfastXanh SM

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