Discover VinFast’s daring strategy to revolutionize the Indian automotive landscape! Learn how they’re seeking to lower import duties on electric vehicles, igniting excitement among Indian consumers. Will VinFast’s bold move reshape India’s car market? Find out now!
Introducing VinFast’s Vision
VinFast, a vibrant electric vehicle manufacturer from Vietnam, is eager to make its mark in India. To ease the journey for Indian customers into the world of VinFast vehicles, the company is requesting a temporary reduction in import duties on its cars for about two years. This move is aimed at allowing Indian consumers to become acquainted with VinFast’s innovative products while the company gears up to establish a local manufacturing plant.
Excitement fills the air as The Vietnam EV maker embarks on the construction of its factory in the picturesque state of Tamil Nadu. With plans to kick off production by the middle of the upcoming year, the company is primed to serve the Indian market initially, with ambitions to later expand its reach globally. Speaking to Reuters, the Company’s India CEO, Pham Sanh Chau, shared insights into the company’s journey towards realizing this dream.
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Forging Partnerships with Tamil Nadu
Last month, the Company forged an agreement with Tamil Nadu, setting the stage for a significant investment of up to $2 billion. A substantial portion, totaling $500 million, is earmarked for the project’s initial five years, illustrating VinFast’s commitment to fostering economic growth and innovation in the region.
In a bid to navigate India’s regulatory landscape, VinFast, much like its counterpart Tesla, has petitioned for a reduction in the country’s 100% import duty on fully-built electric vehicles. However, this plea has encountered resistance from local automakers. While India deliberates on these requests, a government official disclosed last month that no decision has been reached yet.
A Personal Appeal from VinFast
Pham Sanh Chau, with a heartfelt appeal, suggests a temporary reduction of import duty tax to 70% to 80% for a limited number of cars over two years. This, he believes, will afford Indian consumers the opportunity to embrace VinFast’s offerings. Despite the pending decision from the central government, VinFast remains steadfast in its commitment, pushing ahead with the construction of its manufacturing facility.
India’s Electric Vehicle Ambitions
India’s journey towards embracing electric vehicles has just begun, with electric models accounting for a modest 2% of total car sales last year. Nevertheless, the Indian government is resolute in its aim to escalate this figure to 30% by 2030, unveiling programs to entice electric vehicle manufacturers to its shores.
The Tamil Nadu project is slated to have an annual production capacity of up to 150,000 vehicles, complementing VinFast’s existing plant in Vietnam, which boasts a capacity of 250,000 vehicles. Pham Sanh Chau also reveals that the Vietnam EV Major is diligently collaborating with approximately 55 Indian dealers to establish a robust sales network. Furthermore, there are whispers of the company’s potential introduction of its sleek two-wheeler models to the Indian market in the future, further enriching the mobility landscape in the region.
Bhaarat Bulletin’s Rahul Singh and Reuters have contributed to the above report
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