VinFast, the electric vehicle (EV) division of Vingroup, a prominent conglomerate in Vietnam, is preparing to launch its lineup in India, with bookings scheduled to open this month, according to a senior company official. The firm aims to introduce its VF7 and VF6 models in India before the forthcoming festival season and plans to ramp up annual production in the country to 1,50,000 EVs in the coming years, targeting exports to markets in the Middle East and Africa. Pham Sanh Chau, the CEO of VinFast Asia, shared that the company is optimistic about creating as many as 3,500 local jobs by 2030. VinFast has established its first plant, a $2 billion facility, in Thoothukudi, Tamil Nadu. Chau mentioned that the company will initially showcase its cars in shopping malls and airports prior to the commencement of bookings.
He noted that VinFast has already invested a significant amount in the Thoothukudi plant and intends to utilise the full $2 billion investment by 2030. Chau emphasised that the company's objective is to present itself as a premium EV brand in India, with a full ecosystem accompanying its launch. The VF7 and VF6 models are currently in production in Vietnam, and the final pricing for these vehicles has not yet been decided.
VinFast car prices in India
Acknowledging the sensitivity of the Indian market, Chau assured that the vehicles would be offered at affordable prices, adding that while the models will be premium, a formal announcement regarding pricing will be made soon. The company plans to start production with an annual output of about 50,000 cars and hopes to scale up to 150,000 based on market demand.
VinFast job opportunity in India
On the hiring front, Chau indicated that nearly 400 recent graduates from various universities in Tamil Nadu have been interviewed, with many expected to join the company soon. He stated the expectation of reaching a workforce of up to 3,500 locals by 2030, underlining VinFast's commitment to the state government. Chau credited the swift establishment of the Tamil Nadu plant, which was completed in just 15 months, to the prompt support received from both state and central governments.
In outlining VinFast's strategy for entering the Indian market, Chau mentioned the intention to develop a network of dealers, authorised repair shops, and extensive charging points, alongside a commitment to a sustainable future that includes options for customers to exchange their second-hand cars for new ones.
He pointed out that increasing localisation will be crucial as VinFast progresses in India, noting that the company currently does not benefit from any duty exemptions in the country. This localisation effort will help leverage government incentives, reduce costs, and enhance competitiveness. Chau revealed ongoing discussions with various state governments about establishing charging infrastructure.
Speaking on the decision to expand into India, Chau remarked that VinFast is already the leading car company in Vietnam and has successfully ventured into various services there. He expressed confidence that now is the right time for global expansion, particularly in India's dynamic automobile market.
To enhance the charging infrastructure in India, Chau reiterated that they are in talks with state governments regarding potential collaborations, stating that global investors have previously supported their projects, and he hopes to gain backing from domestic investors in India as well.
Chau, who has an extensive diplomatic background and served as Vietnam’s ambassador to India for five years, highlighted the strong historical relations between India and Vietnam, tracing back to leaders like President Ho Chi Minh and Mahatma Gandhi. He emphasised the close strategic partnership enjoyed by the two countries.
Competing with Tesla
On competing with Tesla, which is also looking to enter the Indian market, Chau explained that he does not view Tesla or even BYD as competitors. He stated that VinFast's mission is focused on green mobility and that any organisation sharing this vision would be considered a friend. He expressed confidence that VinFast's products would meet the needs of Indian consumers and expressed hope that the company would rank among the top EV players in the country in the coming years.
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Inputs from PTI
