Vietnamese automaker VinFast bets big on India’s fledgling EV market

VinFast, Vietnam's first global automaker, enters Indian EV market with production in Tamil Nadu starting July.

VinFast, the first automaker from Vietnam to expand into the global market, is set to make inroads into the Indian EV space with production at its plant in Tamil Nadu’s Thoothukudi district set to begin in July.

The Vietnamese car brand, which currently sells its products in 16 countries across North America, Europe and Asia, will manufacture the VF7 and VF6 models in Thoothukudi, for which bookings will open in June. Company sources said the production capacity will be 50,000 vehicles per year initially, with the potential to reach 1,50,000 to meet future demand.

“India is a promising and growing market. EV adoption is comparatively low; so, we decided to take this opportunity to enter the market,” VinFast Asia CEO Pham Sanh Chau said.

Mr. Chau said VinFast wanted to position itself as a manufacturer of premium EVs with competitive pricing and excellent after-sales service.

When asked about its USP, Mr. Chau said, “We don’t want to just sell cars. We want to bring in the whole EV ecosystem.”

He said VinFast would build a network of dealers/showrooms, authorised repair shops and charging points; promote green mobility; and facilitate buy-back or swapping of old cars with newer models.

Stressing the importance of localisation, he said it helped companies bring down cost, secure government incentives, and be more competitive.