January 18, 2025
Vietnamese electric vehicle manufacturer VinFast has unveiled plans to penetrate the Indian automotive market by introducing its premium electric SUVs, the VF6 and VF7. This strategic move positions VinFast alongside local competitor Mahindra & Mahindra and China's BYD in the burgeoning Indian EV sector.
Aligning with India's ambitious goal to elevate electric vehicle adoption to 30% by 2030, VinFast aims to contribute significantly to this transition. The company has committed to investing $500 million over the next five years to establish a comprehensive car and battery manufacturing facility in Tamil Nadu. The initial production capacity is projected at 50,000 vehicles annually, with scalability up to 250,000 units.
To facilitate a smoother market entry ahead of the factory's completion, VinFast is advocating for a reduction in India's current 100% import tax on fully assembled electric vehicles. This proposal, however, faces opposition from domestic automakers who are concerned about increased competition.
Despite facing financial challenges due to a slowdown in global electric vehicle demand, VinFast remains optimistic about its expansion plans. The company's initiative in India is part of a broader strategy to establish a significant presence in key international markets, thereby strengthening its global supply chain and contributing to the worldwide shift towards sustainable transportation.
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