Net loss widened to 773.5 million in Q2, up 27.3 from Q1
Revenue rose 33 quarteronquarter to 357 million
Chairwoman VinFast to stick to 80,000 units sales guidance, eye to deliver 20,000 units of mini SUV VF 3 this year
Sept 20 Reuters Vietnamese electric vehicle maker VinFast39;s losses widened in the second quarter due to rising costs linked to its overseas expansion and impairment charges, although its revenue rose, it reported on Friday.
VinFast, which started to deliver cars in California last year, said it made a net loss of 773.5 million in the AprilJune period, an increase of 27 from the first quarter and 40 bigger than the same period last year.
Revenue jumped 33 quarteronquarter to 357 million but its deepening loss underscores the risks of VinFast39;s aggressive expansion strategy which could have repercussions for its parent company Vingroup.
We are still a startup so we expect to have losses for a couple more quarters, Thuy Le, VinFast39;s chairwoman, told Reuters in an interview.
However the industry is driven by volumes. As we increase the volumes and optimize the costs, we should be able to get to even and profitability, she added.
Selling expenses rose by 25.5 quarteronquarter due to increasing sales and marketing costs, coupled with asset impairments, according to the filing.
The EV maker39;s gross margin stood at negative 62.7 in the second quarter, primarily due to an impairment charge of 104 million on the net residual value of its…