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Vietnamese EV Maker VinFast to Expand to India
POWER & RENEWABLE ENERGY

Vietnamese EV Maker VinFast to Expand to India

Vietnam's VinFast is planning to establish car assembly plants in India, aiming to capitalize on the growing demand for electric vehicles (EVs) in the world's third-largest automobile market. VinFast announced its intention to set up completely knocked down (CKD) facilities in both India and Indonesia as part of its strategy to expand its global presence.

These CKD facilities in Indonesia and India are designed with a combined planned capacity of up to 50,000 cars per year and an estimated initial capital expenditure ranging from $150 million to $200 million. VinFast anticipates commencing production by 2026.

VinFast aims to tap into the significant potential for increased EV adoption in India and Indonesia, where EV penetration currently stands at just 1%. These CKD facilities in these markets offer access to government incentives for local manufacturing, relief from certain tariffs and taxes, as well as favorable rates for raw materials.

Additionally, VinFast has streamlined its capital expenditure plan for global manufacturing in 2024 and 2025, expecting to realize savings of approximately $400 million compared to earlier projections. These cost savings will be allocated towards the establishment of CKD factories in Indonesia and India.

While VinFast is actively hiring in India for various positions, it has not disclosed the specific location of its planned facility in the country. If it proceeds with its India expansion, VinFast will compete with local automakers such as Tata Motors and Mahindra & Mahindra, both of which already offer EVs in the Indian market.

The Indian government has set an ambitious goal of achieving a 30% share of EVs for private cars by 2030.

VinFast, backed by Vietnam's largest conglomerate Vingroup, reported a 159% year-on-year increase in third-quarter revenue, reaching 8.25 trillion Vietnamese dong ($338 million). However, its net loss widened from 11.2 trillion Vietnamese dong to 15 trillion Vietnamese dong. The company delivered 10,027 EVs in the July-September quarter, a substantial increase compared to the 153 units delivered in the same period the previous year.

Vietnam's VinFast is planning to establish car assembly plants in India, aiming to capitalize on the growing demand for electric vehicles (EVs) in the world's third-largest automobile market. VinFast announced its intention to set up completely knocked down (CKD) facilities in both India and Indonesia as part of its strategy to expand its global presence. These CKD facilities in Indonesia and India are designed with a combined planned capacity of up to 50,000 cars per year and an estimated initial capital expenditure ranging from $150 million to $200 million. VinFast anticipates commencing production by 2026. VinFast aims to tap into the significant potential for increased EV adoption in India and Indonesia, where EV penetration currently stands at just 1%. These CKD facilities in these markets offer access to government incentives for local manufacturing, relief from certain tariffs and taxes, as well as favorable rates for raw materials. Additionally, VinFast has streamlined its capital expenditure plan for global manufacturing in 2024 and 2025, expecting to realize savings of approximately $400 million compared to earlier projections. These cost savings will be allocated towards the establishment of CKD factories in Indonesia and India. While VinFast is actively hiring in India for various positions, it has not disclosed the specific location of its planned facility in the country. If it proceeds with its India expansion, VinFast will compete with local automakers such as Tata Motors and Mahindra & Mahindra, both of which already offer EVs in the Indian market. The Indian government has set an ambitious goal of achieving a 30% share of EVs for private cars by 2030. VinFast, backed by Vietnam's largest conglomerate Vingroup, reported a 159% year-on-year increase in third-quarter revenue, reaching 8.25 trillion Vietnamese dong ($338 million). However, its net loss widened from 11.2 trillion Vietnamese dong to 15 trillion Vietnamese dong. The company delivered 10,027 EVs in the July-September quarter, a substantial increase compared to the 153 units delivered in the same period the previous year.

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