Vietnamese EV maker VinFast to debut in India this month
What's the story
VinFast, the largest passenger vehicle manufacturer in Vietnam, is gearing up to launch its VF6 and VF7 electric vehicles (EVs) in India.
The firm's Asia CEO Pham Sanh Chau announced the news at a media event in Hanoi.
The official launch is expected to take place around the festive season, with bookings starting in the middle of this month.
Market competition
VinFast's EVs to compete in India's mid-size SUV segment
The VF6 and VF7, both equipped with LFP cells, will be taking on established players in India's mid-size SUV segment.
These include Tata's Nexon and Curvv, MG's ZS EV, Hyundai's Creta EV, Mahindra's BE6 and XEV 9e, as well as the upcoming Maruti Suzuki e-Vitara.
The pricing and range of these SUVs in India are yet to be revealed by VinFast.
Manufacturing
Thoothukudi plant to assemble EVs
VinFast's VF6 and VF7 will be assembled at the company's Thoothukudi plant in Tamil Nadu.
The facility, which has an annual capacity of 50,000 units in Phase 1, could scale up to 150,000 units later.
Chau said they already have plans for Phase 2 of the factory and that it would eventually ramp up its capacity to meet market demand and explore export opportunities.
Investment strategy
Investment and localization plans
VinFast has invested $2 billion in its Thoothukudi plant, with $500 million already spent on Phase 1. The facility is expected to create 3,500 jobs.
The company also plans to localize production in India for competitive costs.
Interestingly, some parts of the cars sold by VinFast in Vietnam and other countries are already manufactured by Indian auto component makers.
Expansion
VinFast's future plans in India
VinFast is part of Vingroup, Vietnam's largest conglomerate with interests in various sectors.
The company plans to build an ecosystem supporting EVs, including public chargers, service stations, an EV ride-hailing platform and a buyback program for old cars.
Apart from VinFast, Vingroup also intends to bring its wind and solar energy businesses, hospitality services as well as educational and healthcare institutions to India.