Vietnamese electric vehicle (EV) automaker VinFast is pulling back on its Canadian retail footprint, announcing the closure of five of its 10 corporate-owned stores across the country. The move comes as the company grapples with shifting market conditions, a more cautious consumer base, and ongoing uncertainty around government EV incentives.
The company confirmed that it will maintain a presence in each of the four provinces where it currently operates—Ontario, British Columbia, Quebec, and Alberta—but will shut down high-profile shopping mall showrooms in Vancouver (BC), Toronto (ON), and Laval (QC). Two additional locations, not yet specified, will also be shuttered. (via Automotive News)
VinFast Canada described the closures as a strategic refocus, saying the decision will allow the company to enhance long-term performance and better align its operations with current EV demand. The company emphasized its continued commitment to the Canadian market and said it will soon announce plans to expand its after-sales service network nationwide.
Modest Sales Since Launch
VinFast entered the Canadian market in mid-2023 with the launch of the VF 8, its first all-electric SUV offered to Canadian consumers. The company adopted a direct-to-consumer model, setting up storefronts in major shopping centers instead of traditional car dealerships.
However, despite aggressive marketing and competitive pricing, VinFast has struggled to gain traction in Canada. According to S&P Global Mobility, the brand registered just 89 new vehicles across the entire country in 2023.
Sales figures for 2024 did not show a significant improvement. As of early 2025, VinFast has not broken into the top 15 brands for EV sales in Canada, highlighting the uphill battle the company faces in building consumer awareness and trust in a market increasingly dominated by established players like Tesla, Hyundai, and Ford.
Shifting Strategy
With retail performance underwhelming and the EV adoption curve flattening in Canada with the elimination of provincial and federal rebates in recent months, VinFast is exploring new options for its go-to-market strategy. The company is considering the introduction of franchised dealerships, a model it has already begun rolling out in the United States.
VinFast’s decision to close half of its stores reflects broader EV industry headwinds. Rising interest rates, reduced subsidies, and slower-than-expected infrastructure buildout have collectively tempered consumer enthusiasm across North America. For newer brands like VinFast, those hurdles are even bigger to overcome.
