Vietnamese Carmaker aims at an annual manufacturing capacity of 1.5 lakh to enhance India EV ecosystem
Indian government received a grand push in its expanding electric vehicle (EV) ecosystem with the official opening up of Vietnamese auto bigwig VinFast advanced EV manufacturing facility in Thoothukudi, Tamil Nadu. The 1,50,000 projected vehicle per year manufacturing capacity is based on the ambitious entry of VinFast in the EV markets of the fastest developing nations in the world.
The decision to construct the plant under a strategic association with Tamil Nadu government would bring thousands of employment opportunities and propel the investments in the sustaining industries like battery manufacturing, recharging infrastructure, and EV component supply chains. The plant occupies 400 acres of land with a philosophy that puts great emphasis on sustainability with the exploitation of green building strategies and alternative sources of energy.
Madam Le Thi Thu Thuy, Chairwoman of VinFast said, “We are happy to start our India trip here in Tamil Nadu as our base.” We have invested here reflecting our long term and belief in potential of India to emerge as a global EV powerhouse.
The Tamil Nadu government rejoiced in welcoming the investment saying it matched the vision of the state to be the EV capital in South Asia. Tamil Nadu is likely to find potential investment in EVs, following its policy incentives, strategic location, and much more skilled workforce, and the state has already drawn considerable investment of global players in the EV sector.
VinFast is entering India when EV demand is picking up, and the government is providing subsidies as fuel prices increase, and consumers want cleaner transportation. The company is seen to first launch electric SUVs and scooters that suit the Indian road requirements as well as price sensitivity and then export the latter to South Asia, the Middle East, and Africa.
This move is perceived to be game changing by industry analysts. Ramesh Srinivasan, an expert in the auto industry, told Reuters that the entry of VinFast into the Indian market will be with serious competition that is currently dominated by Tata, Mahindra and other upcoming players such as Ola Electric.
Senior representatives of both the Indian and Vietnamese governments as well as representatives of the industry and international media attended the inauguration event.
With construction stages moving forward and scale up of production, the question on everyone mind will be whether VinFast can combine its international EV knowhow and emerging India intertwined market dynamics.