VinFast to arrive in India by second half of 2024
VinFast, a Vietnam-based global automotive company, is gearing up to launch its electric vehicles (EVs) in India, according to Moneycontrol. This move from the carmaker comes as the Indian government is reportedly mulling tax cuts for imported EVs. Initially, VinFast will import its electric Sports Utility Vehicles (e-SUVs) as Completely Built Units (CBU), followed by Completely Knocked Down (CKD) kits for assembly in the country.
Plans to set up a manufacturing facility in India
VinFast seeks to take advantage of the Indian government's plans to lower import duties on electric cars. Once the duties are slashed, the Vietnamese company will start importing its models during the second half of next year. By 2025, VinFast plans to set up a manufacturing facility in India, initially assembling models and later producing them with a higher degree of localization.
VinFast will focus on producing electric SUVs
The Indian facility will necessitate an investment of Rs. 200-250 crore and possess a capacity of 1.5 lakh units per annum. However, utilization levels will be below one-third during the first phase of manufacturing operations. VinFast will largely be focusing on e-SUVs for the Indian market, with initial shipments including VF6, VF7, VF8, and VF9 models, followed by a pure electric micro or mini-SUV designed specifically for India.
The company has aggressive global expansion plans
VinFast CEO Le Thi Thu Thuy has previously mentioned that the company intends to "aggressively move" into Southeast Asian markets and raise "a lot of capital" for global expansion. There has been speculation about VinFast establishing a production unit in India for worldwide markets. Puneet Gupta, Director (India & ASEAN Automotive Sales Forecast) at S&P Global Mobility, said VinFast's entry would invigorate the EV supply chain and offer more options for Indian consumers.
