VinFast said on Wednesday its first dealership in San Diego, California, is set to begin operations this month, as the Vietnamese electric-vehicle maker doubles down on the dealer model in a bid to boost sales.

Backed by Vietnam’s largest conglomerate, Vingroup, VinFast has faced challenges including softer demand, stiff competition and the fallout of U.S. tariffs.

In addition to the San Diego store, the company said it was seeking and evaluating opportunities for dealerships throughout California.

Vingroup had initially planned to focus on America for its foreign sales and followed the direct-to-customer model like Tesla, but slow progress in the U.S., even before growing uncertainty caused by the tariffs, pushed a change in strategy.

The carmaker also plans to roll out an e-bus in the U.S., its chair said earlier this month.

It is shutting down some showrooms and shifting its focus to Asian markets including Indonesia and India, the company has said.

Shares of the company were marginally up.

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(Reporting by Zaheer Kachwala in Bengaluru and Phuong Nguyen; Editing by Shilpi Majumdar)