Similar to Tesla, VinFast has also sought a reduction in India’s 100% import duty on fully assembled EVs.
VinFast has approached the Indian government to request a reduction in car import duties for approximately two years. This move is intended to allow customers to become acquainted with their products while the company’s local manufacturing plant is being established, according to a company executive who spoke to Reuters.
The Vietnam-based electric vehicle (EV) manufacturer has initiated the construction of its factory in Tamil Nadu and plans to start production by the middle of next year. Initially, the focus will be on domestic sales, with plans to expand to exports later on, as India CEO Pham Sanh Chau stated in an interview.
VinFast and the Tamil Nadu government have agreed to work towards an investment of up to $2 billion, with a commitment of $500 million for the first five years, as reported by the newswire.
Similar to Tesla, VinFast has also requested a reduction in India’s 100% import duty on fully assembled EVs. However, this proposal has not been well-received by domestic automakers. Although the Indian government is considering the requests, no decision has been made yet, as mentioned by a government official last month. Chau revealed at the sidelines of an event that they had requested a reduction in import duties to 70-80% for two years and for a very limited number of cars to allow customers to familiarize themselves with the products, as further reported by the newswire.
Chau also mentioned that the company will proceed with the construction of the manufacturing facility while awaiting the final decision from the central government.
Chau, who previously served as the Vietnamese ambassador to India, stated that the company is actively collaborating with around 55 dealers to establish a sales network in India. Additionally, VinFast may consider selling its two-wheeler models in the country in the future.
