VinFast is a subsidiary of Vingroup, one of Vietnam‘s largest privately-held conglomerates. Founded in 2017, VinFast quickly gained attention for its rapid development and ambitious global expansion plans. The company marked a significant milestone by starting EV production in 2021, showcasing a range of electric cars and scooters. The company recently announced a significant move into the Indian market. Vinfast, known for its ambitious global expansion plans, is set to establish its first manufacturing facilities in India. This decision aligns with India’s growing interest in EVs and marks a major step for VinFast in tapping into one of the world’s largest vehicle markets.
The total investment will be around $2 billion
The agreement, forged with the southern state of Tamil Nadu, involves an investment of up to $2 billion, with an initial commitment of $500 million over the first five years. Tamil Nadu, often referred to as the ‘Detroit of Asia’, is an ideal location for VinFast, considering the region’s existing cluster of EV players such as Ola Electric and Ather, and international brands like China’s BYD.
VinFast’s foray into India isn’t just about expanding its global footprint; it’s a strategic move in a nation where electric vehicles are still a nascent but rapidly growing market. With electric models accounting for approximately 2% of India’s car sales last year, the potential for growth is significant, especially in light of the Indian government’s target of achieving 30% electric car sales by 2030.
The new facilities, which include an EV and battery manufacturing plant in Thoothukudi, Tamil Nadu, are expected to create 3,000 to 3,500 local jobs. This not only underscores VinFast’s commitment to contributing to the Indian economy but also reflects the broader trend of job creation in the green technology sector.
Interestingly, while VinFast is a relative newcomer in the EV industry, having started producing electric vehicles only since 2021, its aggressive expansion strategy has quickly positioned it as a notable player. The company’s plan to establish a nationwide dealership network in India further demonstrates its intent to become a major competitor in the EV market.
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(Via)
