Vietnamese electric vehicle firm VinFast will establish its first production unit in India to strengthen its worldwide reach. Sources said that the facility's location is in Tamil Nadu and would produce EV batteries.
VinFast has kept its growth plans quiet despite being likened to Tesla and BYD. The company's announcement about the new production plant is closely awaited. VinFast intimated that it will divulge its plans at an "appropriate time," in a Wednesday statement. The Tamil Nadu government representative has not responded to inquiries, as reported by Reuters.
Insiders privy to the development have disclosed that VinFast officials have conducted on-site inspections of potential locations in Thoothukudi district. The step underscores the EV manufacturer's concerted efforts to finalize its manufacturing footprint in the burgeoning Indian market.
Workers operate the car assembly line at the new automobile plant of VinFast, Vietnam's first homegrown car manufacturer in Haiphong on June 14, 2019.
India: A Key EV Market
It was reported in September that VinFast had started the hiring process for various positions in India, including sales, legal, and back-office roles. The company expressed a predilection for recruits who embody qualities such as daring to think, daring to do, and daring to face difficulties.
The exact size of the investment and the operational commencement date of the VinFast factory in Tamil Nadu remain ambiguous at this juncture. However, in October, VinFast laid out broader plans for assembly factories in both India and Indonesia. These facilities, each envisaged with an annual production capacity of up to 50,000 cars, are slated for an initial capital expenditure of $200 million, with production scheduled to commence in 2026.
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Le Thi Thu Thuy, VinFast's CEO, disclosed in October that Green SM, an EV taxi operator predominantly owned by VinFast's founder, also harbors plans to establish a formidable presence in India, recognized as the world's third-largest automotive market.
VinFast seeks to launch e-scooters and e-cars in India's discerning market, demonstrating the manufacturer's dedication to EV diversity. Chennai, the "Detroit of Asia," is the capital of Tamil Nadu, which has numerous major EV players. BYD, Ola Electric, and Ather are notable, as per a report published by XM.
VinFast Expanding in US
In a separate development from Vietnam News, VinFast recently announced pivotal agreements with five dealers in the United States, marking the company's strategic entry into the American market. These dealerships are poised to initiate the sale of VinFast's VF 8 model. Future models will follow similarly when they are offered to discriminating US consumers.
VinFast EV customers in the US will receive a 10-year or 200,000-kilometer vehicle guarantee and a 10-year unlimited mileage battery warranty. VinFast wants 125 US sales points as part of its expansion. Additionally, the corporation has 13 California retail and service outlets.
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