Even as consumer interest in electric vehicles continues to grow, many automakers are concluding that the ongoing transition might take longer to complete than initially anticipated.
In this context, and in a period marked by economic uncertainty, tariff wars, reduced government incentives for EV purchases and price increases, Vietnamese manufacturer VinFast has decided to close half of its dealerships in Canada. Its stated aim? To reallocate resources effectively and improve long-term performance.
The company had established 10 stores nationwide: four in Ontario, three in British Columbia and three in Quebec. VinFast says it will maintain a presence in each province but close the mall-based stores in Vancouver, Toronto and Laval, near Montreal. Two other locations will also be shuttered, but these have not been identified yet.
"It is essential that we continue to adapt and evolve our business to ensure we are well-positioned for future growth," VinFast Canada stated in a press release sent to Automotive News.
The number of employees affected by the closures is currently unknown.
VinFast debuted in Canada in 2022. Its initial steps were shaky, but the company later gained momentum, though its sales volumes remained marginal (around 2,000 VF 8 units in 2024). With the discontinuation of government EV incentives at the beginning of the year, interest has slowed, mirroring trends elsewhere.
Despite the closure announcement, VinFast says it remains committed to selling vehicles in Canada. The company even indicated that it plans to announce an expansion of its after-sales service network this year.
VinFast is also continuing to evaluate the possibility of introducing franchised dealerships into its sales network, as it has done in the United States.