The company plans to apply for the new EV policy and will use the CBU route to establish its brand before starting production in Tamil Nadu in 2025.
VinFast is planning to enter the Indian market in the second half of FY25 with two imported models—a compact SUV EV and a crossover hatchback. According to sources, the Vietnamese EV specialist plans to leverage the new EV policy announced by the Government of India, which facilitates the import of several models. Among its global product lineup, the VFe34 and VF5 compact electric vehicles are likely candidates to be introduced in India within the next year.
Despite being imported, these models are expected to be competitively priced and will challenge established players like Tata Motors, MG Motor, and Mahindra & Mahindra, all of which are planning to expand their EV offerings in the next 12 months. Initially, the vehicles will be imported as completely built units (CBUs), with plans to transition to completely knocked down (CKD) units before achieving deep localisation. The batteries for these vehicles are expected to be sourced from VinFast’s plant in Indonesia once local production begins.
Pham Sanh Chau, CEO of VinFast India, did not divulge specific details but emphasized the company’s commitment to delivering a broad range of world-class EV products to Indian consumers. He highlighted VinFast’s flexible sales strategies and exceptional after-sales services, which are designed to enhance customer accessibility. VinFast India is currently collaborating with local dealers to build a substantial brand presence and retail network across India, with a detailed business plan to be revealed later.
VinFast has demonstrated remarkable speed and agility in the rapidly evolving electric vehicle sector. Just 50 days after signing a Memorandum of Understanding with the Tamil Nadu Government to invest USD 2 billion, the company began construction of its EV plant. This initial phase involves an investment of USD 500 million to establish a production capacity of 150,000 units annually, with production expected to commence by the end of 2025.
Pham Sanh Chau has praised India’s new policy that promotes electric car manufacturing and reduces import duties on certain vehicles. This policy, which lowers import duties to 15% from as much as 100% for a period of five years, contingent on an investment of at least USD 500 million in local manufacturing within three years, will enable VinFast to introduce premium-quality SUVs at accessible prices.
VinFast, a Nasdaq-listed company, offers a range of popular electric models, including the VF e34, VF 8, VF 5, and VF 9, and has a presence in several global markets, including the US, Canada, Germany, France, and the Netherlands, in addition to Vietnam.
The company’s manufacturing facility in Tamil Nadu spans 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate, conveniently located near a port to streamline exports.
The entry of companies like Vinfast and Tesla into the Indian market, followed by the initiation of manufacturing operations within the country, significantly enhances the electric vehicle (EV) ecosystem. This move not only promotes the adoption of eco-friendly transportation solutions but also boosts the local production of EV components. The presence of these global giants fosters technological transfer and skill development, catalyzing the growth of a robust supply chain for electric vehicles in India. This development is expected to attract further investments, stimulate job creation, and contribute to the country’s goals for sustainability and reduced carbon emissions. In essence, the decision by companies such as Vinfast and Tesla to invest in India’s manufacturing sector marks a pivotal step towards the strengthening and expansion of the nation’s EV market and its associated industries.
