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by
Jordy Leo
- January 10, 2024
VinFast [VFS:US], a Vietnam-based electric vehicle (EV) manufacturer, has announced a USD2bn investment in India, the world’s third-largest automobile market, as reported by the Economic Times on January 7. The company has signed a memorandum of understanding (MoU) with the state government of Tamil Nadu, an Indian southern state known for vehicle manufacturing. Under the agreement, VinFast will initially invest USD500m to build an integrated EV facility in the state. Set to commence construction this year, the facility will have an annual capacity of up to 150,000 units, creating 3,000 to 3,500 employment opportunities. In addition to the manufacturing facility, VinFast also looks to develop a dealership network across India to tap into the huge automobile market.
VinFast’s significant investment in India is part of its aggressive expansion into Southeast Asian markets and the globe. Previously, the automaker had started delivering EVs in the US in early 2023 and had scheduled its first European deliveries in the fourth quarter of last year. Despite a widened net loss of USD620m in the third quarter of 2023, VinFast aims to seize growth opportunities in the emerging EV market in India, where the government has committed incentives and subsidies to achieve 30% electrification in its automobile industry by 2030. Attracted by the supporting policies and market potential, automakers including Hyundai Motor [005380:KS] and China’s MG Motor have already established manufacturing plants in India. In addition, EV industry leaders Tesla [TSLA:US] and BYD [1211:HK] have also unveiled plans to set up EV factories in the country.
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