According to Reuters, on February 25th, Pham Sanh Chau, CEO of VinFast India, stated that VinFast has requested the Indian government to lower the country's import tariffs on electric vehicles for a period of about two years, to allow local consumers to become familiar with its products. Meanwhile, the company is also investing in building a manufacturing plant locally.
Pham Sanh Chau told Reuters that VinFast has commenced construction of a factory in the southern Indian state of Tamil Nadu, with plans to start production by the middle of next year, initially selling in the Indian market before exporting to other markets.
In January, VinFast and Tamil Nadu issued a joint statement committing to a project investment of up to $2 billion and planning to invest $500 million in the first five years. The statement noted that construction of the electric vehicle and battery manufacturing plant for the project is expected to begin this year, creating 3,000 to 3,500 jobs locally.
Like Tesla, VinFast also hopes for the Indian government to reduce the 100% import tariffs on pure electric vehicles, but faces opposition from domestic Indian car manufacturers. A spokesperson for the Indian government has yet to respond to media requests for comment on this report. Last month, an Indian government official stated that the government has been considering these requests but has not made a decision yet.
Pham Sanh Chau stated, "We... propose reducing import tariffs. For example, over a period of two years, for a specific number of models, we hope to lower this rate to 70% to 80%, so that consumers can become familiar with our products. The government is still considering, but while waiting for the final decision, we will continue to advance the construction of the factory."
According to VinFast, the annual capacity of the Tamil Nadu factory will reach 150,000 units, while its main factory in Vietnam has an annual capacity of 250,000 units. Pham Sanh Chau mentioned that the company is already working closely with about 55 Indian dealers to establish a sales network and may consider selling its two-wheeler models in India in the future.
In 2023, electric vehicle sales accounted for only about 2% of total car sales in India, but the Indian government aims to increase this proportion to 30% by 2030 and is developing a plan to attract electric vehicle manufacturers.
