Vietnamese vehicle maker VinFast is all set to debut in India. Recently, it was reported that the VinFast utility vehicle VF8, relies heavily on domestic demand, with around 60% of the deliveries.
VinFast India Plant
Reportedly, the company plans to deliver 100,000 units this year, up from nearly 35,000 deliveries it made in 2023, which was below its target of up to 50,000 units due to slow EV adoption in some regions and intensified price competition. Its revenue in the final quarter of 2023 reached $437 million, missing analysts' average estimate of $570.9 million, according to LSEG data. Full-year revenue rose 91% to $1.2 billion. Now, the company has confirmed a 400-acre manufacturing plant in Thoothukudi, Tamil Nadu in the presence of Thiru M. K. Stalin, Chief Minister of Tamil Nadu.
VinFast also plans to establish a dealership network across the country. VinFast plans to invest approximately Rs 4,144 crore over five years in its EV manufacturing plant in India, which is projected to have a capacity of producing 1.5 lakh vehicles annually. The facility will create job opportunities for 3,000 to 3,500 people in the state. Commenting on the inaugural ceremony, Mr. Pham Sanh Chau, CEO of VinFast India, said, “VinFast’s groundbreaking ceremony for its plant in Thoothukudi, Tamil Nadu, is a significant stride towards sustainable and green mobility in India.
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. This milestone strengthens the bonds between the robust economies of Vietnam and India, and underscores VinFast’s dedication to a zero-emission transportation future, setting the stage for economic growth, innovation, and environmental sustainability in the region”.
Timeline
It will likely aim to start operations with fully-built imports starting from 2025, and then offering CKDs (completely knocked down units) in India by 2026, with localised models to be introduced after.
