VinFast Set to Drive into India with Locally Assembled Cars

According to a source with knowledge of the plans, VINFAST , a Vietnamese manufacturer of electric vehicles, would introduce domestically manufactured models into the Indian market, departing from its previous approach of exclusively offering imported EVs in the third-largest car market globally. The redesigned strategy comes after the company's new facility in Tamil Nadu. The insider, who wished to remain anonymous, stated that the facility is probably going to start operations by March 2025, three months ahead of schedule.

VinFast, the electric vehicle division of Vingroup, the largest corporation in Vietnam, is anticipated to launch its inaugural locally built vehicle amid the 2025 festivities. Its cars are probably going to be sold in the 25–30 lakh bracket, which puts them in the high-end, reasonably priced segment of India's expanding EV industry. The models' range is probably between 300 and 500 kilometers.

VinFast, the manufacturer of the VFe-34, VF6, and VF7 automobile models, will be able to sell its goods at reasonable rates and save on hefty import charges due to its decision to join the Indian market through the completely knocked down (CKD) approach. When it comes to imported automobile models, India charges 70% import duty on those valued at less than USD 40,000 and 100% import duty on those valued at more than USD 40,000 (cost, insurance, and freight). A 15% tariff is applied on CKD kits.

With a minimum expenditure of USD 500 million, automakers that establish manufacturing facilities in the nation are eligible for import duty discounts under the EV program. These businesses will be permitted to import 8,000 automobiles annually at a reduced import tariff of 15% on models that cost USD 35,000 or more for five years, starting on the day the government issues the clearance letter. For approximately the next five years, VinFast intends to invest approximately USD 500 million (INR 4,150 crore) to construct a 150,000-unit-per-year facility in Thoothukudi, near Chennai. According to the 400-acre facility's agreement of understanding with the Tamil Nadu government, the initial phase of operations will employ 3,000–3,500 workers.

VinFast hopes to reach a peak capacity of 50,000 units in its first year of operation through local assembly and competitive pricing. By the end of this year, 150,000 electric cars are expected to be sold in India, up from 90,000 units in 2023. Plans for India are probably going to be revealed by the firm at the Bharat Mobility Global Expo, which is slated to take place from January 17–22, 2025.