VinFast Auto, a manufacturer of electric vehicles in Vietnam, announced on Thursday that it plans to invest up to USD 200 million (about Rs 1,665 crore) to build assembly plants in India and Indonesia. Production is anticipated to start in 2026.
VinFast, an American electric vehicle rival of Tesla, stated in its third-quarter earnings statement that it “is aiming to access the tremendous potential for increased EV adoption in India and Indonesia where EV penetration is currently only 1%.”
A well-known electric vehicle (EV) manufacturer from Vietnam, VinFast Auto, has revealed its bold proposal to invest USD 200 million in the establishment of assembly facilities in both India and Indonesia. By 2026, it is predicted that these units will start producing. VinFast Auto, a direct rival of American electric vehicle juggernaut Tesla, is aiming to capitalize on the significant opportunity for expanded EV adoption in India and Indonesia, where EV penetration is now at only 1%.
“The establishment of VinFast facilities in these local markets can provide access to government incentives for local manufacturing, relief from certain tariffs and taxes, and access to raw materials at attractive rates,” stated the statement.
There are various strategic benefits to setting up regional VinFast facilities in these regions. First of all, it gives the business access to government incentives meant to support regional manufacturing. These incentives may include tax breaks and other financial benefits. VinFast Auto will additionally gain from lower tariffs and taxes, which will significantly strengthen its competitive edge in these developing EV markets. Additionally, by forging a local presence, VinFast gains access to raw materials at more advantageous prices, further enhancing cost-effectiveness.
This large investment demonstrates VinFast’s dedication to competing with established manufacturers like Tesla for a leading position in the global EV market. VinFast aims to be at the forefront of the rising demand for electric vehicles in India and Indonesia by increasing its presence there, helping to create a more sustainable and environmentally friendly future. The company’s long-term vision and commitment to influencing mobility in the Asian area are reflected in this strategic decision.