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VinFast to Enter Indian Market with made in India by 2025, Fascinating

VinFast to Enter Indian Market with made in India by 2025, Fascinating

VinFast to Enter Indian Market, hello, I’m back with an amazing blog just for you guys because you guys need the information every day so let’s start with an introduction which is on our topic VinFast to Enter the Indian Market, with Locally Assembled EV.

VinFast to Enter Indian Market

VinFast, a prominent Vietnamese electric vehicle manufacturer and a formidable rival to Tesla, is poised to enter the Indian market with locally manufactured models. Scheduled to commence operations at its new facility in Tamil Nadu by early 2025, VinFast plans to unveil its first locally produced car during the festive season. Priced between Rs 25-30 lakh and offering a robust driving range of 300-500 kilometers, these vehicles aim to leverage local production to offer competitive pricing and avoid high import duties. This strategic movement underscores VinFast’s commitment.

VinFast, the Vietnamese electric vehicle manufacturer, is gearing up to enter the Indian market with locally assembled models. This marks a shift from their initial plan of selling only imported EVs in India. VinFast is often considered a competitor to Elon Musk’s Tesla in the electric vehicle arena.

VinFast factory in Tamil Nadu

The new VinFast factory in Tamil Nadu is set to start operations in early 2025, ahead of the initial schedule by six months. According to a report by the Economic Times, VinFast’s first locally assembled car is expected to launch during the 2025 festive season, with prices ranging from Rs 25-30 lakh. These models will fall into the premium affordable segment of India’s growing EV market and are expected to offer a driving range of 300-500 kilometers.

VinFast Price

By opting for the completely knocked down (CKD) route, VinFast can bypass high import duties and offer competitive prices in the Indian market. India currently imposes a 100% import duty on car models with a CIF (Cost, Insurance, and Freight) value exceeding $40,000 and a 70% duty on models below $40,000. However, CKD kits are only subject to a 15% duty.

When VinFast Enter the Indian market

VinFast aims to leverage local assembly and competitive pricing to achieve a peak capacity of 50,000 units in its first year of operations. The company projects that India’s nascent electric car market will end the current year with 150,000 units sold, up from 90,000 units in 2023. VinFast plans to reveal its strategy for India at the Bharat Mobility Global Expo, scheduled from January 17 to 22, 2025.

A source commented, “Local assembly boosts confidence among suppliers, dealers, and buyers. The company will reinvest savings from duties into brand building and marketing. With the plant expected to be operational in early 2025, the CKD route is more sensible than importing completely built units.”

Although VinFast’s plans are not dependent on India’s new EV policy announced on March 15, the company is keenly awaiting the policy guidelines to potentially benefit from incentives. The first meeting between EV companies and government officials to discuss the new policy occurred on April 19, with a VinFast representative in attendance.

The EV policy offers import duty concessions to automakers investing a minimum of $500 million in manufacturing units in India. It allows the import of up to 8,000 cars per year at a reduced import duty of 15% for models priced at least $35,000, valid for five years from the government’s approval.

In line with this policy, VinFast has committed to investing over Rs 4,150 crore ($500 million) over the next five years to build a manufacturing facility near Chennai, in Thoothukudi. The 400-acre factory will have an annual production capacity of 150,000 units and is expected to employ between 3,000 and 3,500 workers during its initial phase, according to the memorandum of understanding with the Tamil Nadu government.

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