Vietnamese electric vehicle (EV) manufacturer VinFast is set to make its mark in the Indian market, eyeing the launch of its first two-wheelers and four-wheelers in the third quarter or second half of the calendar year 2024. The company plans to import completely-built up units (CBUs) into India and has already engaged with potential dealer partners, conducting dealer ‘clinics’ in Vietnam.
Strategic Approach to Indian Market:
VinFast is strategically approaching the Indian market by initially targeting large tier-1 cities before expanding its presence to towns and cities in the interiors. The company, known for offering a range of battery electric SUVs, is gearing up for a phased entry into India and is actively establishing its leadership team in the country.
Pricing and Import Duty Considerations:
The initial pricing for VinFast’s vehicles in India is estimated to be in the range of ₹18-20 lakh. However, import duty structures on fully built-up cars may influence the final pricing. Vehicles priced below $40,000 face a 70% import duty, while those above that threshold incur a 100% import tax.
India Investment and Manufacturing Plans:
VinFast has committed to investing $500 million in Tamil Nadu over the next five years to establish an integrated EV manufacturing facility. The greenfield factory is expected to become operational in 2026, aligning with VinFast’s vision to expand its global footprint in regions with high demand for EVs.
Market Dynamics and Competition:
With the electric car market in India growing at a CAGR of 14% in the last four years, VinFast aims to tap into the SUV segment, representing nearly 10% of the market. The company’s entry into the competitive Indian market is expected to bring it into competition with established players like Tata Motors.
