VinFast shifts strategy to local assembly, aiming for competitive pricing and a quicker market entry in India.
In Short:
- VinFast to launch locally assembled electric vehicles in India.
- New factory in Tamil Nadu to open by mid-2025, ahead of schedule.
- First locally assembled VinFast EV expected by 2025 festive season.
- Vehicles to be priced between ₹25-30 lakh.
- Expected range of 300-500 kilometers for the models.
- Local assembly will reduce import duties and lower costs.
VinFast, a Vietnamese electric vehicle (EV) manufacturer, is planning to enter the Indian market with locally assembled models. This marks a change from their earlier plan to sell only imported EVs in India, the world's third-largest automobile market. According to a source familiar with the matter, this new strategy comes after the accelerated opening of their new factory in Tamil Nadu, which is now expected to be operational in the first half of 2025, six months ahead of schedule.
VinFast, the EV division of Vietnam's largest conglomerate Vingroup, is anticipated to launch its first locally assembled car during the festive season of 2025. These vehicles will likely be priced in the ₹25-30 lakh range, targeting the premium affordable segment of India's rapidly growing EV market. The models are expected to offer a range of 300-500 kilometers.
By opting for the completely knocked down (CKD) route for its Indian entry, VinFast aims to avoid the high import duties that come with fully built imported cars. India imposes a 100% import duty on cars with a CIF (cost, insurance, freight) value over $40,000 and 70% on those below $40,000. In contrast, CKD kits attract a much lower duty of 15%, allowing VinFast to offer its vehicles at more competitive prices.