VinFast starts construction in Tamil Nadu, pushes for import duty cut
ECONOMY & POLICY

VinFast starts construction in Tamil Nadu, pushes for import duty cut

VinFast, a Vietnamese electric vehicle manufacturer and a competitor of Tesla in the global market, has initiated its entry into India. The company commenced the construction of its Rs 160 billion electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu. VinFast has already made a request for a reduction in import duties on its cars for approximately two years, aiming to allow customers to become familiar with the brand and its operations in the state.

The construction marks the beginning of the first phase of VinFast's integrated electric vehicle hub, with an initial investment of around Rs 40 billion, expected to generate over 10,000 jobs. The Thoothukudi project aspires to become a leading electric vehicle production hub in the region, with an annual production capacity of up to 150,000 units.

According to a report from Reuters, Pham Sanh Chau, the company's CEO in India, stated on Sunday that they have proposed a two-year reduction in import duties, lowering it to at least 70-80 percent for a specific range of cars. VinFast believes this reduction is necessary until customers become familiar with the brand. Chau, appointed as the CEO in India in November last year, was previously Vietnam's ambassador to India, Nepal, and Bhutan from 2018 to 2022.

Chau mentioned that the government is still evaluating the company's request, coinciding with Tesla's similar request for a 100 percent reduction in import duties on fully-built electric vehicles. However, Tesla's entry has faced delays as the government has not yet provided a favourable response.

Tamil Nadu's industries minister, T R B Rajaa, expressed pride in adding VinFast to the list of electric vehicle manufacturers in the state. He highlighted Chief Minister M K Stalin's goal of making Tamil Nadu the electric vehicle capital of South Asia. Currently, Tamil Nadu dominates the electric vehicle manufacturing sector in India, producing over 70 percent of electric two-wheelers and 40 percent of electric four-wheelers sold in the country.

The government sees VinFast's facility as more than just another manufacturing unit. It views the establishment as a crucial step in creating a comprehensive industrial cluster in South Tamil Nadu. The region has witnessed various recent investments, such as the JROne footwear cluster in the backward district of Perambalur, which is expected to generate over 40,000 jobs.

Rajaa emphasized Tamil Nadu's advantage in having a skilled talent pool, mentioning initiatives like the Naan Mudhalvan scheme under the Skill Development Corporation of TN, which trains people in electric vehicle and battery technology. He expressed satisfaction that VinFast would be hiring talents trained under the Naan Mudhalvan scheme.

VinFast, a Vietnamese electric vehicle manufacturer and a competitor of Tesla in the global market, has initiated its entry into India. The company commenced the construction of its Rs 160 billion electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu. VinFast has already made a request for a reduction in import duties on its cars for approximately two years, aiming to allow customers to become familiar with the brand and its operations in the state. The construction marks the beginning of the first phase of VinFast's integrated electric vehicle hub, with an initial investment of around Rs 40 billion, expected to generate over 10,000 jobs. The Thoothukudi project aspires to become a leading electric vehicle production hub in the region, with an annual production capacity of up to 150,000 units. According to a report from Reuters, Pham Sanh Chau, the company's CEO in India, stated on Sunday that they have proposed a two-year reduction in import duties, lowering it to at least 70-80 percent for a specific range of cars. VinFast believes this reduction is necessary until customers become familiar with the brand. Chau, appointed as the CEO in India in November last year, was previously Vietnam's ambassador to India, Nepal, and Bhutan from 2018 to 2022. Chau mentioned that the government is still evaluating the company's request, coinciding with Tesla's similar request for a 100 percent reduction in import duties on fully-built electric vehicles. However, Tesla's entry has faced delays as the government has not yet provided a favourable response. Tamil Nadu's industries minister, T R B Rajaa, expressed pride in adding VinFast to the list of electric vehicle manufacturers in the state. He highlighted Chief Minister M K Stalin's goal of making Tamil Nadu the electric vehicle capital of South Asia. Currently, Tamil Nadu dominates the electric vehicle manufacturing sector in India, producing over 70 percent of electric two-wheelers and 40 percent of electric four-wheelers sold in the country. The government sees VinFast's facility as more than just another manufacturing unit. It views the establishment as a crucial step in creating a comprehensive industrial cluster in South Tamil Nadu. The region has witnessed various recent investments, such as the JROne footwear cluster in the backward district of Perambalur, which is expected to generate over 40,000 jobs. Rajaa emphasized Tamil Nadu's advantage in having a skilled talent pool, mentioning initiatives like the Naan Mudhalvan scheme under the Skill Development Corporation of TN, which trains people in electric vehicle and battery technology. He expressed satisfaction that VinFast would be hiring talents trained under the Naan Mudhalvan scheme.

Next Story
Resources

RentenPe and Mygate Partner to Transform Rent Payments in India

Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India’s first Rent Credit Score™ platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe’s payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..

Next Story
Real Estate

Supreme Unveils New Brand Identity to Elevate Lifestyle

Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group’s refreshed vision to ‘Elevate Lifestyle’. This brand transformation represents more than a visual refresh—it marks a strategic shift in the company’s mission, visual identity and market positioning. The update will be visible across all of Supreme’s digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..

Next Story
Infrastructure Urban

Capri Loans Launches #TarrakiKeHaath Campaign Honouring India’s Everyday Heroes

Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India — from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans’ long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat’s economy. Conceptualized by Rediffusion Brand Solutions, the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?