Welcome VinFast: A New Player in India’s EV Market
VinFast, a pioneering Vietnamese electric vehicle manufacturer, is making waves in the Indian automotive industry by unveiling plans to introduce locally assembled electric vehicles, diverging from its initial strategy of selling imported EVs in the region. Often regarded as a formidable contender to Elon Musk’s Tesla, VinFast’s foray into India marks a significant milestone in the country’s growing EV landscape.
The company’s upcoming facility in Tamil Nadu is set to commence operations earlier than planned, aiming for a launch by March 2025. The inaugural locally assembled vehicle is expected to hit the market during the festive season of 2025, with an estimated price range of Rs 25-30 lakh, positioning itself within India’s burgeoning premium affordable EV segment. These models are projected to offer a driving range spanning 300-500 kilometers, catering to the diverse needs of Indian consumers.
By adopting the CKD (completely knocked down) route, VinFast can circumvent high import duties and present its products at competitive prices in the Indian market. Taking advantage of India’s import duty structure, which imposes a 100% duty on high-value car models, VinFast aims to provide cost-effective solutions to its customers.
VinFast envisions achieving peak production of 50,000 units in its debut year of operation, aligning with the rapid growth witnessed in India’s electric car sector, expected to escalate from 90,000 units in 2023 to 150,000 units by the end of the ongoing calendar year. The company is slated to unveil its strategic roadmap for India at the Bharat Mobility Global Expo, scheduled between January 17 and 22, 2025.
An industry insider detailed, “The local assembly model instills confidence in suppliers, dealers, and buyers alike, allowing the company to focus resources on brand-building and marketing endeavors.” The decision to opt for CKD over CBU (completely built unit) aligns with VinFast’s long-term vision for sustainable growth in the Indian market.
While VinFast’s entry into India does not hinge on the country’s recent EV policy, keen interest is observed towards leveraging potential incentives outlined in the policy. Engagements between EV firms and government officials in April underscore the evolving landscape, with VinFast poised to explore available benefits.
Embracing the EV policy, VinFast hints at investing over Rs 4,150 crores ($500 million) in the coming five years to establish a manufacturing hub near Chennai in Thoothukudi. Spanning 400 acres, the state-of-the-art facility boasts an annual capacity of 150,000 units, with initial employment projections ranging between 3,000 to 3,500 workers, as stipulated in its memorandum of understanding with the Tamil Nadu government.
As VinFast charts its course in the dynamic Indian EV market, its commitment to innovation and sustainability positions it at the forefront of the electric mobility revolution, setting the stage for a transformative journey ahead.
