Vietnamese electric vehicle (EV) major VinFast is preparing to install equipment and machinery installation at its India plant, which will have an annual capacity of 50,000 electric vehicles. Production is reportedly set to start by mid-2025, six months ahead of its original schedule. The India plant, apart from serving the domestic market, will act as global export hub.
At its recent Q3 2024 earnings call, VinFast chairwoman Le Thi Thu Thuy said, these two manufacturing facilities would play a critical role in the company’s international strategy.
VinFast’s intensified focus on international markets comes amid struggles to achieve its annual sales target in Vietnam. In Q3 2024, the company delivered 21,912 EVs, marking a 115% year-on-year increase. However, with only 55% of its annual target of 80,000 vehicles met, analysts remain skeptical about the company’s ability to achieve its year-end goal.
VinFast has been aggressively expanding its global footprint including markets like the US, Canada, and Southeast Asia. In late October, the company entered the Middle East, opening its first dealership in Dubai. Consequently, the share of international sales have gone upto 9% of total deliveries in Q3 2024, up from 3% a year earlier.
While VinFast is also constructing a new CKD factory in Vietnam, it will cater primarily to the local market, which currently accounts for 90% of its deliveries. The Indian plant, therefore, is expected to serve both domestic and export markets.
In January, VinFast signed a memorandum of understanding (MoU) with the Tamil Nadu government, committing to a $2 billion investment, with an initial $500 million to be spent over five years. The EV plant in Tuticorin will assemble CKD parts, starting with an annual capacity of 50,000 vehicles and scaling up to 300,000 units based on demand.
As of October 31, VinFast operated 173 global showrooms for EVs. The company said it has signed Letters of Intent with dealers across 15 major Indian cities and districts to expand its local presence.
In Q3, VinFast reported a 21% sequential increase in capital expenditure to $132 million, attributing the rise to investments in its Indian and Indonesian plants.
Recent filings with India’s Registrar of Companies (RoC) show VinFast Auto India’s board has approved an increase in authorised capital from ₹208 crore to ₹1,250 crore.
