Vietnamese automaker Vinfast has broken ground on a new manufacturing facility in the Indian state of Tamil Nadu.
Vinfast will invest $500mn in the facility over 5 years, bringing it to a projected capacity of 150,000 vehicles annually. The firm will work with the state government to bring total investment to $2bn.
"By establishing an integrated electric vehicle facility, the company's commitment to job creation, green transportation, and strategic partnerships solidifies Vinfast’s position as a major player in the electric vehicle industry," says Pham Sanh Chau, CEO of VinFast India.
India represents a key market in Vinfast's global expansion plan. The firm plans to establish a nationwide dealership network to build its brand presence.
The Indian EV market is positioned to grow in coming years thanks to tax exemptions on BEVs and HEVs, as well as a government target of achieving 30pc of all vehicle sales being electric by 2030, according to the Trade Promotion Council of India.
Sign up for EV inFocus
EV inFocus: Hard news for the corporate e-mobility sector
No spam. Unsubscribe anytime.
As well as India, the firm is targeting Indonesia and the US with its overseas expansion plans.
Earlier this year VinFast announced its entry into the Indonesian market with its VF 5, VF e34, VF 6, and VF 7 models.
In the US VinFast now has 13 stores and service centres in California and six dealers in five states – New York, Texas, Kansas, Florida and North Carolina – with an additional 75 dealers under application.
At the end of 2023, VinFast pivoted from a capital-heavy, direct-to-consumer distribution model to a capital-light hybrid model leveraging the existing dealership network in the US.
The firm says its battery leasing policy could drive sales significantly in new markets.
"This mechanism brings the upfront price of Vinfast vehicles and the monthly running cost down in line with — or even more competitive than — many gas-powered vehicles on the market today,” the firm says in its Q4 2023 results statement.
VinFast delivered a total of 34,855 electric vehicles in FY 2023, marking a 374pc increase compared to the previous year, and plans to deliver 100,000 vehicles in FY 2024.
Tom is an experienced business writer, specialised in the energy transition
Tom is passionate about Electric Vehicles and how Tesla, BYD, Rivian, Lucid and others are transforming automotive
