VinFast India taps Hyundai executive as its CEO
What's the story
Vietnamese electric vehicle (EV) manufacturer VinFast is looking to appoint Hyundai India's Tapan Ghosh for the position of CEO in India. Ghosh, who is currently the Vice President and Head of Sales at Hyundai India, has already submitted his resignation. He will join VinFast's Indian unit on October 16. The move comes shortly after VinFast launched its two new electric SUVs, VF6 and VF7, in India.
Business plan
VinFast's operations in India
So far, Pham Sanh Chau, CEO of VinFast Asia, has been leading the company's strategy in India. The company has already set up an assembly plant in Thoothukudi, Tamil Nadu. Initially, it plans to produce 50,000 cars at this facility which will be scaled up to 300,000 units later. VinFast has also pledged almost $2 billion investment in India over the next few years to bolster its operations here.
Industry expertise
Ghosh's experience and career journey
Ghosh, who started his career with Hindustan Motors in 1995, has worked with several companies including Honda Cars, Mahindra & Mahindra, Maruti Suzuki India, and Tata Motors. He joined Hyundai in 2013 and has been instrumental in driving sales for the company. His appointment as CEO at VinFast could bring a wealth of experience to the Vietnamese carmaker's Indian operations.
Market entry
VinFast vs Tesla's approach in India
VinFast's approach in India is different from Tesla, which entered the country in July by launching showrooms in Mumbai and Delhi. While VinFast has committed to local manufacturing and is looking for an Indian leader, Tesla has kept its operations small with just two showrooms and remote leadership. Experts have previously said foreign carmakers need to invest in local leadership for a successful bid in the Indian market.
Market competition
Challenges for VinFast in India
VinFast has surprised many by pricing its cars in the same range as Tata and Mahindra's offerings in India. However, analysts believe that the company needs top Indian leaders to gain consumer trust. Puneet Gupta from S&P Global Mobility said, "Customers already have inhibitions about EVs, so an added uncertainty about a relatively unknown brand in the Indian market will not make things easy for VinFast."