Vingroup is considering bringing the entire ecosystem approach to India and is open to exploring multiple partnerships.
18 Jan 2025 | 12258 Views | By Ketan Thakkar
Pham San Chau, CEO of Asia at VinFast, Vietnam’s EV specialist, says the Group is ‘open to multiple partnerships’ in the Indian EV space to gain a foothold in India's highly competitive yet nascent electric vehicle market.
The CEO of VinFast Asia told Autocar Professional that Vingroup ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Pham San Chau, CEO of Asia at VinFast, Vietnam’s EV specialist, says the Group is ‘open to multiple partnerships’ in the Indian EV space to gain a foothold in India's highly competitive yet nascent electric vehicle market.
The CEO of VinFast Asia told Autocar Professional that Vingroup is considering bringing the entire ecosystem approach to India and is open to exploring multiple partnerships that can accelerate the transition to a zero-emission world.
Apart from partnering with vendors to boost localization, it is open to a local or global partner in battery manufacturing and to tying up with regional players to strengthen the EV ecosystem in the country.
VinFast's parent company, Vingroup, may bring in VinES—Energy Solution, the battery company and V-Green, the charging company. It may also bring in FGF, a subsidiary that can trade in used EVs, and offer attractive finance solutions, including leasing and retrofitment of EVs, to create a used EV market.
This may mean that Vingroup's financial commitment to India could grow multifold to several billion dollars from its current $500 million investment in the factory in Tamil Nadu.
The company is in talks with the Indian government to avail of benefits under the new proposed EV policy. Since VinFast committed to investing before the announcement, the EV maker is requesting the government consider a brownfield investment like VinFast.
Chau said That India's entry would mirror the brand's entry into Southeast Asian markets like Indonesia, where the company has set up a big factory and it is developing the ecosystem.
“We have come here with a long-term vision for local manufacturing, a network of dealers and workshops, and a charging station network. We don't want to sell cars, but we want to build the whole infrastructure. Eventually, we would want to get into electric buses and vehicles for people movement or public transport."
Ecosystem Play
V-Green is a charging infrastructure company established from VinFast’s charging station development division. The company focuses on developing an EV charging network and supporting Vietnam’s goal to increase charging station density globally.
The majority is owned by Vingroup promoters, who hold a 90% stake. V-Green operates independently, allowing VinFast to focus on market expansion and sustainable development.
The company’s vision includes building a comprehensive charging infrastructure to support VinFast vehicles and securing financing to enable VinFast’s international growth. V-Green’s initial activities include acquiring land and forming partnerships to establish charging networks in key global markets. It also collaborates with other charging providers to deliver charging services for EV owners.
Vingroup’s FGF program is designed to reduce emissions and promote sustainable practices. Under this initiative, VinFast has transitioned to producing only electric vehicles and offers incentives for residents in Vingroup’s urban developments to adopt EVs.
FGF Trading and Services JSC, a company within the FGF program, provides self-driving car rentals and used electric vehicles to increase access to sustainable transportation. Both V-Green and the FGF program aim to advance green mobility and develop infrastructure to support the transition to electric cars.
Both these companies will explore the potential of entering India.