Vietnamese electric carmaker, VinFast is confident that it will continue to receive support from the Indian government with regard to its investments in the country.
In an e-mail interaction with Fe, chief executive officer, Pham Sanh Chau, didn’t specifically comment whether the company will be participating in the new EV policy announced by the government in March. However, he said that the company feels encouraged by the commitment of the Indian government towards development of EVs in the country.
Under the EV policy, the import duty has been brought down to 15% on vehicles priced $35,000 and above for a five-year period, subject to manufacturers setting up manufacturing facilities in the country within a three-year period. In addition, 25% localisation needs to be met within three years and 50% at the end of the fifth year.
“We are encouraged by India’s commitment to EV development in India. To capitalise on the long-term incentives offered by the Indian government for electric vehicles, we will focus on accelerating the construction of our assembly factory. Looking ahead, we seek to continue receiving support from the Indian government’s investment policies,” Chau said.
The company has already said that it expects to open its plant in India in the first half of next year, which is six months earlier than initially planned. Though Chau did not comment specifically, analysts feel that the company will not be keen on importing completely built units as it is advancing the timeline for domestic manufacturing.
The plant will be located in Tamil Nadu on 400 acres of land owned by the State Industries Promotion Corporation of Tamil Nadu. The initial capacity of the plant is expected to be 150,000 vehicles annually, and the company plans to invest over Rs 4,100 crore over five years.
The first models to be launched in India could include the VinFast VF7, VinFast VF8, VinFast Vfe34, and VinFast VF6. The company also expects to create 3,000 to 3,500 jobs for local people.
“With a diverse portfolio of EVs, we are currently working on India specific models. We aim to showcase VinFast product and technology portfolio at the Mobility Expo in January 2025,” Chau said.
On developing the charging infrastructure in India, Chau said that V-Green, the charging station infrastructure development company established by Vingroup chairman Pham Nhat Vuong, will prioritise the development of charging station infrastructure for VinFast electric vehicles in Vietnam and other high-potential global markets.
“V-Green is conducting a feasibility study for a larger network base for charging stations for VinFast’s customers in India. The detailed business plan will be announced at the appropriate time,” he added.
