(Reuters) -Vietnamese electric-vehicle maker VinFast reported a deeper second-quarter loss on Friday, driven by rising costs linked to its ambitious Asia expansion, although its revenue remained on a rising trend, according to its exchange filing.
VinFast, which started delivering cars in California last year, reported a gross loss of $224 million in the April-to-June period, compared with a $151 million gross loss in the previous quarter.
While revenue from accelerated vehicle deliveries jumped 33% quarter-on-quarter to $357.4 million, that was not enough to offset higher costs of sales and operations.
VinFast has been expanding aggressively to Asian markets to capitalize on growing demand for electric vehicles in those regions and offsetting a weaker buying environment in the United States.
The EV maker’s gross margin stood at negative 62.7% in the second quarter, primarily due to an impairment charge on the net residual value of $104 million, compared to $5 million in the previous one.
However, excluding these factors, the company noted an improvement in gross profit margin.
Deliveries in the first half of 2024 were recorded at 22,348 vehicles, up 101% against the same period last year, with half of the deliveries made to affiliates of its parent company.
(Reporting by Zaheer Kachwala and Phuong Nguyen; Editing by Pooja Desai)
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