Vietnamese EV manufacturer VinFast Auto has announced its plans to invest up to USD 200 million (about Rs 1,665 crore) to set up assembly units in India and Indonesia, with production expected to commence by 2026. The Tesla-rivaling EV maker “is aiming to access the tremendous potential for increased EV adoption in India and Indonesia where EV penetration is currently only 1 per cent”, the company said, citing media reports in its third quarter earnings statement.
“The establishment of VinFast facilities in these local markets can provide access to government incentives for local manufacturing, relief from certain tariffs and taxes and access to raw materials at attractive rates,” it said. As per an ETAuto report, the plants in India and Indonesia will be both CKD (completely knocked down) facilities with a total capacity of assembling 50,000 cars per year each, and an estimated total capital expenditure of USD 150-200 million in phase I.
“The establishment of VinFast facilities in these local markets can provide access to government incentives for local manufacturing, relief from certain tariffs and taxes and access to raw materials at attractive rates,” it said. As per an ETAuto report, the plants in India and Indonesia will be both CKD (completely knocked down) facilities with a total capacity of assembling 50,000 cars per year each, and an estimated total capital expenditure of USD 150-200 million in phase I.
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VinFast says that production is expected to commence at the facilities by 2026. The company did not reveal where the plant will be set up in India and what models will be assembled here. VinFast’s global portfolio consists of models like VF6, VF7, VF8 and VF9, with the latter being the flagship seven-seat SUV offering with prices starting from $83,000 in the US, converting to around Rs 69.04 lakh (ex-showroom).
Upon arrival, VinFast’s EVs could rival companies like China’s BYD (Build Your Dreams), and even American EV maker Tesla, which is planning to enter the Indian market soon. What do you think about VinFast’s entry in the Indian market? Tell us in the comments.