VinFast Auto India CEO Praises New EV Policy, Plans to Launch Premium SUV in Indian Market
VinFast Auto India CEO Praises New EV Policy, Plans to Launch Premium SUV in Indian Market

VinFast Auto India CEO Praises New EV Policy, Plans to Launch Premium SUV in Indian Market

March 19, 2024
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VinFast Auto’s India Chief Executive Officer Pham Sanh Chau expressed optimism regarding India’s recently unveiled electric vehicle (EV) policy, emphasizing its potential to stimulate the introduction of premium-quality SUVs in the Indian automotive market.

“This forward-looking policy helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding aftersales policies,” Chau said in a statement today. With a long-term growth commitment in India, we have pledged an expenditure of $500 million, which includes the electric vehicle manufacturing facility in Tamil Nadu,” Chau noted.

India’s New EV Policy: Key Features and Investment Requirements

The policy entails a significant reduction in import duties on select electric cars to 15% for five years, subject to automakers committing a minimum investment of Rs 4,150 crore (US$500 million) to establish manufacturing operations in India within a three-year timeframe. VinFast has initiated the construction of its maiden integrated EV manufacturing facility in Thoothukudi, Tamil Nadu, with plans for substantial investment in subsequent phases.

Global Expansion Strategy and Market Prospects

Viewing India as a pivotal market for its global expansion endeavors, VinFast acknowledges the nation’s status as the world’s third-largest passenger vehicle market. The automaker’s widespread presence across various international territories, including North America, Europe, and its home market Vietnam, underscores its commitment to delivering innovative electric car models.

Impact on Global Carmakers and Investment Incentives

India’s revised import duty structure for electric vehicles is poised to facilitate the entry of prominent global car manufacturers like Tesla while providing investment incentives to entities like VinFast, Jaguar Land Rover, and Foxconn.

“We highly value the Indian Government’s new EV scheme as it aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain, and offer consumers world-class, zero tailpipe emission vehicles,” Chau said.

The policy stipulates lower import duties for automakers establishing local manufacturing facilities and fulfilling specified domestic value addition targets within predetermined timelines.

VinFast’s Production Roadmap and Export Strategy

With a production kickoff slated for 2026 at its Tamil Nadu facility, VinFast aims to cater to both domestic demand and leverage India’s strategic positioning as an export hub. The automaker’s phased approach may initially involve importing fully assembled units before transitioning to localized production, aligning with evolving market dynamics and regulatory imperatives.

The post VinFast Auto India CEO Praises New EV Policy, Plans to Launch Premium SUV in Indian Market appeared first on E-Vehicleinfo.

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