VinFast, the Vietnamese electric vehicle manufacturer, has commenced the construction of a manufacturing plant in Tamil Nadu, India. The company's India CEO, Pham Sanh Chau, revealed that they aim to kickstart production by mid-next year, initially targeting the domestic market before expanding to exports. This initiative marks a significant step towards VinFast's global expansion strategy.
In a bid to familiarize Indian customers with their products while the local manufacturing plant becomes operational, VinFast has requested the Indian government to consider reducing import duties on its cars for a period of around two years. This temporary reduction, suggested to be between 70% to 80%, is intended to encourage adoption and acceptance of VinFast vehicles in the Indian market.
The establishment of a local manufacturing facility will not only enable VinFast to cater to the increasing demand for electric vehicles in India but also align with the government's ambitious goal of achieving 30% electric vehicle penetration by 2030. This strategic move will contribute to the growth of the electric vehicle ecosystem in India, supporting the country's transition towards cleaner and sustainable transportation solutions.
While awaiting the government's decision on the import duty reduction, VinFast is progressing with the construction of its production facility in Tamil Nadu. The company envisions the plant to have a production capacity of up to 150,000 vehicles annually, adding to its existing capacity of 250,000 vehicles at the main plant in Vietnam. This expansion emphasizes VinFast's commitment to scaling up its operations and establishing a strong presence in the Indian market.
Pham Sanh Chau, a former Vietnamese ambassador to India, highlighted the proactive approach of VinFast in collaborating with Indian dealers to develop a robust sales network. Additionally, the company may explore opportunities to introduce its range of two-wheeler models in the Indian market in the future. With a focus on agility and innovation, VinFast is poised to make a significant impact in India's evolving electric vehicle industry, offering cutting-edge mobility solutions to consumers across the country.