BYD Co., Ltd. (OTC:BYDDY) announced on Thursday its strategy to significantly expand its dealership network in Vietnam.

The electric vehicle (EV) company is opening its first set of stores in the country this week. The move steps up the competition against local rival VinFast Auto Ltd. (NASDAQ:VFS).

By Saturday, 13 BYD dealerships will welcome customers in Vietnam. The plan is to increase this number to approximately 100 by 2026, reported Reuters.

The initial three-model product lineup, featuring the compact crossover Atto 3, will expand to six starting in October, the report read, citing Vo Minh Luc, chief operations officer for BYD Vietnam.

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For now, all BYD models destined for Vietnam will be imported. Last year, the Vietnamese government announced BYD's intention to construct an electric car factory in the northern region. Progress on those plans has since stalled, according to the industrial park operator's statement in March.

"BYD is in talks with a number of localities in Vietnam to optimize the plant plan," Luc said in an emailed statement to Reuters.

The Atto 3 will start at 766 million dong ($30,300), slightly above the 675 million dong entry price of VinFast's VF 6.

Both BYD and VinFast have shifted away from gasoline-engine vehicles. BYD has outperformed its Vietnamese counterpart, emerging as the world's largest electric car manufacturer.

Last year, VinFast sold 32,000 EVs in Vietnam, primarily to a related entity.

In a May report, HSBC projected that Vietnam's annual sales of electric two-wheelers and electric cars could increase from under one million in 2024 to over 2.5 million by 2036.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Image: BYD