Tesla rival VinFast, the Vietnamese electric vehicle maker, has requested that India reduce import duties on its cars for a temporary period of two years. The company is currently in the process of building a manufacturing plant in the state of Tamil Nadu, with production expected to begin by mid-next year. VinFast aims to first cater to the domestic market and then expand its exports, its CEO Pham Sanh Chau has said.
The joint investment between VinFast and Tamil Nadu is expected to reach $2 billion, with an initial commitment of $500 million for the first five years of the project.
According to a Reuters report, similar to Elon Musk-led Tesla, VinFast has sought a decrease in India’s 100% import duty on fully-built electric vehicles. However, this request has been met with opposition from domestic automakers. While the Indian government is considering the proposal, no decision has been made yet, according to a government official. The government spokesperson did not provide an immediate response for comment.
VinFast’s CEO for India, Pham Sanh Chau, explained that the company has proposed a reduction in import duty tax, suggesting it be brought down to 70% to 80% for a limited number of cars over a two-year period. This measure is intended to allow customers to become familiar with VinFast’s products. While awaiting the central government’s final decision, VinFast is proceeding with the construction of its manufacturing facility.
Electric vehicle sales in India accounted for only 2% of total car sales last year. However, the government aims to increase this figure to 30% by 2030 and has been working on attracting electric vehicle manufacturers through various programs. The Tamil Nadu project is expected to have an annual production capacity of up to 150,000 vehicles, compared to 250,000 at VinFast’s main plant in Vietnam.
Pham Sanh Chau, who previously served as Vietnam’s ambassador to India, stated that VinFast is actively collaborating with 55 Indian dealers to establish a sales network. The company may also consider introducing its two-wheeler models in the Indian market in the future. Chau emphasized the agility of VinFast as a startup company, highlighting their ability to move quickly.
The joint investment between VinFast and Tamil Nadu is expected to reach $2 billion, with an initial commitment of $500 million for the first five years of the project.
According to a Reuters report, similar to Elon Musk-led Tesla, VinFast has sought a decrease in India’s 100% import duty on fully-built electric vehicles. However, this request has been met with opposition from domestic automakers. While the Indian government is considering the proposal, no decision has been made yet, according to a government official. The government spokesperson did not provide an immediate response for comment.
VinFast’s CEO for India, Pham Sanh Chau, explained that the company has proposed a reduction in import duty tax, suggesting it be brought down to 70% to 80% for a limited number of cars over a two-year period. This measure is intended to allow customers to become familiar with VinFast’s products. While awaiting the central government’s final decision, VinFast is proceeding with the construction of its manufacturing facility.
Electric vehicle sales in India accounted for only 2% of total car sales last year. However, the government aims to increase this figure to 30% by 2030 and has been working on attracting electric vehicle manufacturers through various programs. The Tamil Nadu project is expected to have an annual production capacity of up to 150,000 vehicles, compared to 250,000 at VinFast’s main plant in Vietnam.
Pham Sanh Chau, who previously served as Vietnam’s ambassador to India, stated that VinFast is actively collaborating with 55 Indian dealers to establish a sales network. The company may also consider introducing its two-wheeler models in the Indian market in the future. Chau emphasized the agility of VinFast as a startup company, highlighting their ability to move quickly.
