VinFast to locally assemble EVs for the Indian market

The company expects to open its Indian factory six months ahead of schedule, in the first half of next year.

Vietnamese EV maker VinFast is gearing up to foray into the electric vehicle segment in India. In the initial phase, the company had planned to import its EVs into the country. However, according to the latest reports, VinFast will now enter the market with locally assembled models.

VinFast is setting up an assembly plant in Tamil Nadu. The change in strategy is expected to fast-track the plant’s opening. The company expects to open its Indian factory six months ahead of schedule, in the first half of next year.

VinFast first locally assembled EV is expected to be launched next year during the festive season. The company has already filed a patent for the VF3, and road trials of the VF e34 have also commenced.

Assembling the cars locally using CKD kits would enable VinFast to save on import duties. The report states that local assembly also gives greater confidence to the suppliers, dealers as well as buyers. The money saved would be allotted for brand building and marketing.

It is said that VinFast is hoping that local assembly and competitive pricing will allow it to attain a peak capacity of 50,000 units in the first year of its operations.

Source: ET Auto