VinFast, the electric vehicle giant from Vietnam, has entered the Indian market to give Tesla a run for its money.
The company has started constructing its Rs 16,000 crore electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu. VinFast wants to make its cars more affordable by asking for a reduction in import taxes for two years. They’re aiming to introduce their brand to Indian customers.
The initial phase of the integrated EV hub, involving an investment of Rs 4,000 crore, has begun, and it’s expected to generate over 10,000 jobs. The Thoothukudi project aims to become a premier electric vehicle production hub, with an annual capacity of up to 150,000 units.
According to Reuters, VinFast’s CEO in India, Pham Sanh Chau, proposed a two-year reduction in import duty to around 70-80 percent for select car models. Chau, who took charge as CEO in November last year, mentioned that the government is currently reviewing the request.
This development aligns with Tesla’s similar plea for a 100 percent cut on import duty for fully-built EVs, a move still awaiting a positive response from the government.
Tamil Nadu’s Industries Minister T R B Rajaa sees VinFast’s entry as a boost for making Tamil Nadu the electric vehicle hub not only in India but in all of South Asia.
The state already leads in electric vehicle manufacturing, with over 70 percent of electric two-wheelers and 40 percent of electric four-wheelers being made there. Over the past three years, Tamil Nadu has attracted investments worth Rs 10 trillion, creating 3.1 million jobs.
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