VinFast, a leading electric vehicle (EV) manufacturer from Vietnam, has announced its entry into the Indian market, where it will compete with Tesla, the global EV giant. The company has signed an agreement with the Tamil Nadu government to set up its first manufacturing plant in the state, with an investment of over Rs 16,000 crore.
A rising star in the EV industry
VinFast, which started its EV journey in 2017, has emerged as the third largest car manufacturer in the world last year, thanks to its capital and innovation. The company was listed on Nasdaq in August 2023 and revealed its Indian expansion plans a month later. VinFast aims to capture a significant share of the Indian EV market, which is the third largest in the world and growing rapidly.
A strategic partnership with Tamil Nadu
VinFast and the Tamil Nadu government have agreed to work towards an investment of up to $ 500 million, or about Rs 4,160 crore, for the first five years of this project. The company will set up its first manufacturing plant in Thoothukudi, Tamil Nadu, where it will produce EV batteries and vehicles. The plant is expected to generate 3,000-3,500 jobs locally and manufacture 1.50 lakh vehicles annually. VinFast will also open dealerships across India to sell its products.
A diverse portfolio of EV products
VinFast plans to launch four electric vehicles in India, including two cars and two scooters. The company has already opened its first factory in North Carolina, USA, in July last year. However, the company currently manufactures its vehicles in Hai Phong, Vietnam. VinFast is known for its sleek design, high performance, and smart features in its EV products. The company hopes to attract Indian customers with its affordable and eco-friendly offerings.