Vietnamese automaker, VinFast Auto Ltd., is preparing to introduce its electric vehicles (EVs) in the Indian market. This comes as the Indian government allegedly considers reducing taxes on imported electric cars. In the first phase, VinFast plans to import its electric sport utility vehicles (e-SUVs) as completely assembled units (CBUs). One year later, they will begin importing kits for local assembly.
The company intends to take advantage of the government’s medium-term plans to reduce tariffs on imported electric cars. According to an anonymous source, once the tariffs are reduced, VinFast will start importing its models in the second half of next year. By 2025, the company plans to establish a manufacturing plant in India, potentially a new or reused project, where they will initially assemble the models and gradually increase local production.
The Indian facility is expected to require an investment of 200-250 crore rupees and have a capacity of 150,000 units per year. However, the initial phase of manufacturing operations is expected to have utilization levels lower than one-third, as stated by the source.
VinFast Auto will mainly focus on e-SUVs for the Indian market. The company plans to introduce models such as VF6, VF7, VF8, and VF9, with a specific micro or mini-SUV for India to be launched in the future. These e-SUVs, except for the India-specific model, will be showcased at the Auto Expo 2025.
VinFast CEO, Le Thi Thu Thuy, previously announced plans to aggressively expand into Southeast Asian markets, starting with Indonesia. The company aims to raise significant capital to support its global expansion ambitions. Speculations about establishing a production unit in India have also been mentioned, with reports suggesting visits to Tamil Nadu and Gujarat to explore opportunities. There have also been reports of VinFast being in advanced discussions with Ford India to possibly acquire their dismantled facility in Chennai.
VinFast’s entry into the Indian electric vehicle market is expected to contribute to the growth of the EV supply chain and offer Indian consumers more choices. The company has appointed former diplomat Pham Sanh Chau as the head of its operations in India. With India as a high priority, VinFast also plans to export to neighboring markets from India.
VinFast Auto Ltd., founded in 2017 by Vingroup, a prominent Vietnamese conglomerate established by Pham Nhat Vuong, is the first Vietnamese car brand to expand to global markets and produce electric vehicles.
Frequently Asked Questions
1. When will VinFast enter the Indian market?
VinFast plans to start importing its electric vehicles to India in the second half of next year.
2. How will VinFast initially import its e-SUVs?
In the first phase, VinFast will import its electric sport utility vehicles (e-SUVs) as completely assembled units (CBUs).
3. Will VinFast assemble its vehicles locally in India?
Yes, VinFast will start importing kits for local assembly of its models in India, starting from one year after the initial imports.
4. What is VinFast’s investment plan for the Indian facility?
The Indian facility is expected to require an investment of Rs 200-250 crore (Indian rupees) and have a capacity of 150,000 units per year.
5. What other models will VinFast introduce in the Indian market?
VinFast will introduce models such as VF6, VF7, VF8, and VF9, with a specific micro or mini-SUV for India planned for the future.