VinFast, the Vietnamese electric vehicle maker, is set to enter the Indian market with locally assembled cars, shifting from its initial plan to sell imported EVs. The company expects to open its Indian factory six months ahead of schedule, in the first half of next year.
VinFast, part of Vietnam’s largest conglomerate Vingroup, plans to launch its first locally assembled car during the 2025 festive season. These cars will be priced between Rs 25-30 lakh, targeting the premium affordable segment. The models are expected to have a range of 300-500 kilometers.
By assembling cars locally, VinFast will save on high import duties, which can reach up to 100% for imported models. Completely knocked down (CKD) kits, which VinFast will use, attract a lower duty of 15%.
A person familiar with the plans said, “Local assembly boosts confidence among suppliers, dealers, and buyers. It also allows the company to invest more in brand building and marketing.”
VinFast is also keeping an eye on India’s new EV policy, which offers import duty concessions for automakers setting up manufacturing units with a minimum investment of USD 500 million. VinFast plans to invest over USD 500 million to build a factory near Chennai with a capacity of 150,000 units per year, employing 3,000-3,500 workers in the first phase.
VinFast aims to reach a peak capacity of 50,000 units in its first year of operations in India. The Indian electric car market is expected to grow to 150,000 units by the end of 2024, up from 90,000 units in 2023. VinFast is likely to reveal its plans for India at the Bharat Mobility Global Expo in January 2025.