After Tesla, VinFast seeks lower EV import tax in India
Vietnam-based VinFast is seeking a two-year reduction in India's import duties on electric cars while its local plant is being built. A company executive said this would help customers become familiar with VinFast's products before production starts at its Tamil Nadu factory. VinFast aims to begin production by mid-next year, initially for domestic sales and later for exports.
Investment and import duty reduction request
The Tamil Nadu government and VinFast are collaborating on an investment of up to $2 billion, with a $500 million commitment for the first five years. Like Tesla, VinFast has asked for a decrease in India's 100% import duty on fully built EVs. However, domestic automakers have not supported this request. A government official stated last month that India is considering the requests but has not yet made a decision.
VinFast's plan and sales network
Pham Sanh Chau, India CEO of VinFast, shared that the company has requested a reduction in import duties to 70-80% for two years and for a very limited number of cars. This will allow customers to get acquainted with the products while the manufacturing facility is being constructed. Chau also revealed that VinFast is working closely with around 55 dealers to establish a sales network in India and may consider selling its two-wheeler models in the country later on.
