Elon Musk-owned Tesla recently announced that it will invest roughly $2 billion to set up their EVs in the Indian market. Since India is one of the most important vehicle markets, more and more car manufacturers are willing to make such an investment in the country. As a testimony to this, Vietnamese EV manufacturer VinFast has also announced its first move in the Indian Market.
VinFast, an electric car company, has decided to invest around $150Mn – $200Mn in India to kickstart its journey in the Indian Market. VinFast has also assured that they will provide maximum service of EVs to increase the adoption of EVs in India. They recently released a statement, saying “We aim for our vehicles to be present in up to 50 global markets and countries by the end of 2024.”
This means India will only be one of the countries where VinFast plans to set up its base in the time to come. The expansion of Vinfast in these markets will likely bring tax relief on its products, while also ensuring optimum prices of its vehicles. VinFast won’t set up a whole manufacturing unit, rather they will follow the CKD units method to maintain the quality of the products.
The proposed facilities of VinFast in India will chunk out 50,000 units of cars annually. The company has also revealed that its assembling facility will likely start off by the year 2026. With the help of the Indian government incentive scheme of Rs 25,000 crore that is linked to the domestic production facility, VinFast aims to add to the sales of EVs in India in good numbers.
Commenting on the company’s plans for India, VinFast chief financial officer David Mansfield said, “VinFast is on track to meet its deliveries guidance and is well-positioned to expand in strategic markets such as Indonesia and India.” This means VinFast will also expand in the Indonesian market, just like its proposed investment in India. With a generally attractive price point for its cars, it remains to be seen how VinFast will find a home in the Indian market in the time to come.