VinFast India Set To Import VF-e34 And VF5, Targeting Launch In Late 2024

- Advertisement -

The company plans to apply for the new EV policy and will use the CBU route to establish its brand before starting production in Tamil Nadu in 2025.

VinFast is planning to enter the Indian market in the second half of FY25 with two imported models—a compact SUV EV and a crossover hatchback. According to sources, the Vietnamese EV specialist plans to leverage the new EV policy announced by the Government of India, which facilitates the import of several models. Among its global product lineup, the VFe34 and VF5 compact electric vehicles are likely candidates to be introduced in India within the next year.

Despite being imported, these models are expected to be competitively priced and will challenge established players like Tata Motors, MG Motor, and Mahindra & Mahindra, all of which are planning to expand their EV offerings in the next 12 months. Initially, the vehicles will be imported as completely built units (CBUs), with plans to transition to completely knocked down (CKD) units before achieving deep localisation. The batteries for these vehicles are expected to be sourced from VinFast’s plant in Indonesia once local production begins.

- Advertisement -

Pham Sanh Chau, CEO of VinFast India, did not divulge specific details but emphasized the company’s commitment to delivering a broad range of world-class EV products to Indian consumers. He highlighted VinFast’s flexible sales strategies and exceptional after-sales services, which are designed to enhance customer accessibility. VinFast India is currently collaborating with local dealers to build a substantial brand presence and retail network across India, with a detailed business plan to be revealed later.

VinFast has demonstrated remarkable speed and agility in the rapidly evolving electric vehicle sector. Just 50 days after signing a Memorandum of Understanding with the Tamil Nadu Government to invest USD 2 billion, the company began construction of its EV plant. This initial phase involves an investment of USD 500 million to establish a production capacity of 150,000 units annually, with production expected to commence by the end of 2025.

Pham Sanh Chau has praised India’s new policy that promotes electric car manufacturing and reduces import duties on certain vehicles. This policy, which lowers import duties to 15% from as much as 100% for a period of five years, contingent on an investment of at least USD 500 million in local manufacturing within three years, will enable VinFast to introduce premium-quality SUVs at accessible prices.

VinFast, a Nasdaq-listed company, offers a range of popular electric models, including the VF e34, VF 8, VF 5, and VF 9, and has a presence in several global markets, including the US, Canada, Germany, France, and the Netherlands, in addition to Vietnam.

The company’s manufacturing facility in Tamil Nadu spans 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate, conveniently located near a port to streamline exports.

The entry of companies like Vinfast and Tesla into the Indian market, followed by the initiation of manufacturing operations within the country, significantly enhances the electric vehicle (EV) ecosystem. This move not only promotes the adoption of eco-friendly transportation solutions but also boosts the local production of EV components. The presence of these global giants fosters technological transfer and skill development, catalyzing the growth of a robust supply chain for electric vehicles in India. This development is expected to attract further investments, stimulate job creation, and contribute to the country’s goals for sustainability and reduced carbon emissions. In essence, the decision by companies such as Vinfast and Tesla to invest in India’s manufacturing sector marks a pivotal step towards the strengthening and expansion of the nation’s EV market and its associated industries.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Crompton Greaves Starts Kitchen Appliance Manufacturing In Vadodara

0
This move aims to boost product quality and operational efficiency, enhancing the delivery of innovative, high-quality kitchen solutions to meet growing consumer demands. Crompton Greaves...

Advancing  Manufacturing Sector With New Refrigerator Plant

0
By incorporating advanced backward integration processes, this plant sets to redefine industry standards, promising improved efficiency and reduced environmental impact, while also boosting local...

EV Sales In India Fall Face First From March to April 2024

0
Electric Vehicle sales, across segments, have fallen short of the promise the sector was witnessing over the last few months. Despite the extension of FAME scheme for...

Buzz

India Eyes $250M Private-Public Cloud Model For Semiconductor R&D

0
According to the plan, this facility will offer easy access to chip and packaging designs for startups, researchers, and small firms. The Indian government is...

EV Parts Maker Matel Raises $4M

0
Matel manufactures components such as power trains and motor control units for electric vehicles. In this funding round, investors included Gruhas, backed by Nikhil...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...

Important Sectors

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...

India Eyes $250M Private-Public Cloud Model For Semiconductor R&D

0
According to the plan, this facility will offer easy access to chip and packaging designs for startups, researchers, and small firms. The Indian government is...

EV Parts Maker Matel Raises $4M

0
Matel manufactures components such as power trains and motor control units for electric vehicles. In this funding round, investors included Gruhas, backed by Nikhil...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...

Ampere Teams With Qualcomm On AI, Unveils New Chip

0
Ampere Computing and Qualcomm team up to create energy-efficient AI chips, launching a data center server aimed at reducing power consumption and outpacing rivals...

Manufacturing

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...

Atul Aggarwal Named New Managing Director Of Sterling Tools

0
In his new position, Atul Aggarwal, who serves as a whole-time director as well, will lead the company's expansion and development into new verticals. Sterling...
Sona Comstar

Sona Comstar’s 3-Pronged Global Strategy To Outperform China In EV Parts Supply

0
Sona BLW Precision Forgings (Sona Comstar) has adopted a three-pronged strategy: leveraging the protectionist policies of the US and Indian governments to exclude Chinese...