The company is slated to apply for the new EV policy and use the CBU route to establish the brand before the start of production kicks off in Tamil Nadu in 2025.
15 Apr 2024 | 10023 Views | By Ketan Thakkar
VinFast is likely to enter the Indian market with two completely built import models – a compact SUV EV and a crossover hatchback in the second half of FY25.
Sources say that the Vietnamese EV specialist will be applying for the new EV policy announced by the Government of ...
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VinFast is likely to enter the Indian market with two completely built import models – a compact SUV EV and a crossover hatchback in the second half of FY25.
Sources say that the Vietnamese EV specialist will be applying for the new EV policy announced by the Government of India and avail the benefits of importing a couple of models.
Amongst its portfolio of products that the company has globally, the VFe34 and VF5 compact electric vehicles are two potential models that may hit the roads in less than a year, say people in the know.
They are likely to be priced aggressively, despite being imported. These models are expected to challenge the likes of Tata Motors, MG Motor and Mahindra & Mahindra who intend to build their own portfolio of models in the coming 12 months. While the initial plan is to import it as a CBU, it will be further localised as a CKD, before deep localisation kicks off. The battery is likely to be imported from the Indonesia plant, once the localisation starts in India.
To a query sent by Autocar, Pham Sanh Chau, CEO - VinFast India did not share any details but said it is committed to providing Indian customers with a wide range of world-class EV products.
“In addition, VinFast’s flexible sales and outstanding after-sales policies for electric vehicles will empower our customers with greater accessibility. VinFast India is presently engaging with Indian Dealer partners to establish a significant brand presence and retail network across the country. The detailed business plan will be announced at the appropriate time,” added Chau.
In this fast-paced electric vehicle revolution, VinFast has exhibited impressive speed and agility.
Within 50 days of signing the Memorandum of Understanding with the Tamil Nadu Government to invest USD 2 billion, VinFast has already broken ground of its EV plant kickstarting its initial tranche of USD 500 million for a capacity of 1.5 lakh units per annum. The start of production for the facility is expected by the last quarter of 2025.
Lauding India’s new policy that promotes electric car manufacturing and cuts import duty on certain cars, Pham Sanh Chau had recently said the policy will help the company to introduce premium-quality sports utility vehicles at inclusive prices.
The Indian government in March unveiled the much-anticipated electric vehicle policy that reduces the import duty on certain electric cars to 15% from the current 70-100% for five years, provided the automaker invests at least Rs 4,150 crore, or USD 500 million, to make in India within three years.
“This forward-looking policy helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding after sales policies,” Chau said.
The Nasdaq company’s popular electric car models include VF e34, VF 8, VF 5, VF 9, and it has presence in the US, Canada, Germany, France, and the Netherlands, apart from its home market Vietnam.
Apart from serving the growing domestic market, VinFast is also likely to capitalise on India’s strong manufacturing expertise to ship vehicles globally.
The plant site spans 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate and is close to the port to facilitate efficient exports.