As VinFast commences the construction of its manufacturing facility in Tamil Nadu, India, the Vietnamese electric vehicle (EV) manufacturer urges a temporary reduction in import duties. VinFast proposes a two-year import duty cut to familiarize customers with its EV products while awaiting the operational launch of its local production plant.
EV Plant Milestone: VinFast’s Ambitious Project Targets $2 Billion Investment in India
VinFast and Tamil Nadu recently revealed plans for a significant investment of up to $2 billion, with an initial commitment of $500 million for the first five years. Amid this ambitious project, VinFast seeks to engage Indian customers by proposing a reduction in import duties, following the footsteps of global EV leader Tesla.
Crucial Decision Pending: India Contemplates VinFast’s Appeal for Import Duty Reduction
In alignment with Tesla’s request, VinFast advocates for a reduction in India’s 100% import duty on fully-built EVs. While the government contemplates the proposal, VinFast’s CEO for India, Pham Sanh Chau, emphasizes the importance of easing import duties temporarily to facilitate consumer acceptance and understanding of VinFast’s innovative EV lineup.
EV Market Dynamics: India’s Growth Targets and VinFast’s Strategic Approach
Despite electric models comprising a modest 2% of India’s car sales in the past year, the federal government eyes a 30% share by 2030, aiming to attract EV manufacturers. VinFast’s Tamil Nadu project, with an annual capacity of up to 150,000 vehicles, aligns with India’s evolving EV landscape, offering a significant production hub alongside Vietnam.
Fast-Track Strategy: VinFast Eyes Quick Market Penetration and Diversification
Highlighting the agility of a startup, VinFast’s India CEO, Pham Sanh Chau, emphasizes the company’s swift progress, already collaborating with 55 Indian dealers and exploring opportunities to introduce its two-wheeler models in the dynamic Indian market.*
