Vietnam-based electric vehicle (EV) startup VinFast has announced its ambitious plans to enter the Indian market by 2026 with an investment of up to $2 billion. The company, which recently became the world’s third most valuable carmaker after a $23 billion SPAC deal, aims to set up its own manufacturing facility in India as well as Indonesia.
VinFast, founded by Vietnam’s richest man Pham Nhat Vuong, considers itself as a rival to Tesla, the global leader in EVs. The company has launched three models of electric SUVs and plans to expand its product portfolio to sedans, buses and trucks. VinFast also intends to export its vehicles to North America and Europe in 2021.
The company has not revealed much details about its India plans and the models it intends to bring to the country. However, it has said that it is looking for resources in sales, legal and back office jobs in India with its office located in Gurugram, Haryana. VinFast has also said that it is in preliminary talks with potential locations for its manufacturing unit in India, possibly in Gujarat or Tamil Nadu.
VinFast hopes to benefit from the government incentives for local manufacturing, relief from certain tariffs and taxes and access to raw materials at attractive rates in India. The company also expects to tap into the growing demand for EVs in the country, which is projected to reach 6.34 million units by 2027.
VinFast is one of Vietnam’s most high-profile companies, backed by Vuong’s conglomerate Vingroup, which has interests in real estate, retail, healthcare and education. VinFast is also developing autonomous driving technology and battery swapping stations for its EVs.