VinFast looks to start India EV operations

Vietnamese electric vehicle (EV) maker VinFast is moving fast to kick-start its India operations, targeting sales of its first two-wheelers and four-wheelers in India beginning in the third quarter or second half of calendar year 2024, two persons aware of the plans told Mint on condition of anonymity.

The company has held dealer ‘clinics’ with 30-35 potential Indian dealer partners in Vietnam, and is soon going to announce its distributor network, which will display both two- and four-wheelers. The company will import these vehicles as completely-built up units (CBUs).

VinFast, which offers battery electric sport utility vehicles (SUVs) spanning the A to E segments (entry-level, compact SUV to ultra-luxury SUV) in Vietnam, will likely eye a price point in the vicinity of ₹18-20 lakh for its first import into India, one of the persons mentioned above said, adding, however, that import duty structures on fully built-up cars in India could tip that pricing higher. Imported vehicles priced below $40,000 face an import duty of 70%, while vehicles above that price point face an import tax of 100%.

While VinFast operates a mix of self-operated experience centres, direct sales and showrooms, and dealer-run showrooms in Vietnam and the US, it is looking to approach the Indian market in a phased manner, appointing dealers in large tier-1 cities first, and then branching out to towns and cities in the interiors.

VinFast is also actively establishing its leadership team in India, and is hiring in large numbers to support its operations out of Gurugram in the National Capital Region.

VinFast will invest $500 million in Tamil Nadu over the next five years to establish an integrated EV manufacturing facility in India, with the greenfield factory to become operational in 2026.

Early deliveries of VinFast’s VF8 SUV in the US were hampered by issues like software bugs and inconsistent build quality, damaging consumer confidence, but the company is doubling down with strong warranties and product fixes to compete in a highly competitive with established players like Tesla.