Tesla Rival Vietnamese EV Giant VinFast Explores Plans for Manufacturing Plant in India

VinFast Auto, a prominent electric vehicle manufacturer, is reportedly considering the establishment of a manufacturing facility in India, as reported by The Economic Times (ET). If this initiative comes to fruition, it would mark a significant milestone as the first Vietnamese automaker to set up a manufacturing unit in India. Notably, VinFast recently secured its position as the world’s third most valuable automaker.

According to sources, the company has engaged in discussions with various state governments, with a focus on Tamil Nadu and Gujarat as potential investment destinations.

While these discussions are in their early stages, VinFast is evidently keen on establishing a presence in India, and the investment could be substantial. However, it remains unclear whether VinFast’s intentions include exporting vehicles or exclusively serving the Indian market.

VinFast Auto’s market capitalization skyrocketed in August, making it the world’s third-largest automaker by market value, trailing only Tesla and Toyota. Following its Nasdaq listing, the company’s shares experienced a 700 percent surge, resulting in a post-listing valuation of $191 billion. Subsequently, its market capitalization has fluctuated, currently standing at $25.7 billion according to Nasdaq data.

During its second-quarter earnings announcement, VinFast revealed plans to expand its dealership networks into new market clusters, including India, starting in 2024. The report by ET suggests that VinFast has ambitious aspirations to compete with Tesla, which commands over 50 percent of the US electric vehicle market.

Despite selling just 7,400 vehicles last year, VinFast anticipates a significant increase in sales, projecting between 40,000 and 50,000 units this year as it expands beyond Vietnam. In July, VinFast inaugurated its first American factory in North Carolina, boasting an expansive 1,800-acre footprint with an initial annual production capacity target of 150,000 vehicles.

VinFast cars are gaining positive traction in the Indian market due to their reputation as affordable alternatives to Tesla, making them an intriguing player in the growing EV landscape.