Like its touristic splendour, the captivating South Asian country of Vietnam is underlined by its vibrant entrepreneurial spirit. This is where a brand like VinFast breaks the traditional mould and finds new ground.
Make no mistake. VinFast is burgeoning with a rather important development as far as its plans for the Indian market are concerned.
Earlier this year, it was confirmed that VinFast, in partnership with the Tamil Nadu (state) government, had planned to invest 2 billion (USD) towards an integrated electric vehicle facility. But now, a mega new development surrounds the Vietnamese carmaker’s plans for the Indian market.
So what is VinFast’s big India news?
It is confirmed that the EV division of the mega Vingroup will launch its maiden EV in India by 2025. The EV company and the government officials had met earlier in April (2024) to discuss the new EV policy. It was to understand how the firm could avail incentives for its future India operations.
Now, we know that the firm is intent on opting for the CKD route for its India operations. The noted EV maker is going to assemble locally in line with its maiden car launch planned for next year.
As a matter of fact, VinFast is already known for some of its popular makes. These include- VFe-34, VF6 and the VF7.
Why is VinFast opting for the CKD route?
The same will help the company save a ton of money with regard to bearing huge import duty prices. Moreover, the strategy will enable VinFast to offer its EV in India at competitive prices.
The concern for prominent foreign EV makers is the 100 per cent import duty on imported car models in India.
Vietnam’s biggest EV carmaker wants none of that. It is not hard to understand.
According to an excerpt from the company’s official statement:
“The local assembly of models gives greater confidence to suppliers, dealers, and buyers. The company will rather use what is saves on duties in marketing and branding activities.”
That said, it is worth delving into what Vinfast is planning over the next half a decade.
With a combined investment of no fewer than INR 4,150 crore over the next five years, the Vietnamese giant is planning big for its Tamil Nadu facility. The site of the factory is Thoothukudi near Chennai. The size of the facility could best be described as enormous, identical to its planned scale of operations.
Just how is that? The Tamil Nadu facility that is expected to roll out the Indian EV priced at 25-30 lakh, is going to be a 400-acre facility. It will employ no fewer than 3,000 to 3,500 workers.
What is further hoped for the Indian market is a planned operational capacity that can deliver 50,000 units in the first year. It is believed that a lot more about the company and its India plans will be revealed at the Bharat Mobility Expo. The same is scheduled for early next year.
