Tesla’s rival Vietnam-based EV maker VinFast plans investment in India
The company is considering setting up its manufacturing plant in either Gujarat or Tamil Nadu.
Vietnam-based EV manufacturer VinFast which is deemed as one of Tesla’s biggest rival is planning to set up a manufacturing unit in India, according to reports in the Economic Times. Last month VinFast emerged as the third most valuable car manufacturer and as per the report the company is considering setting up its manufacturing plant either in Gujarat or in Tamil Nadu.
The report while citing sources said that the company is very keen on entering India and that the talks are currently at a preliminary stage. However, there is no clarity whether VinFast is looking to enter the Indian market by manufacturing the cars in India or whether it is manufacturing here only for exporting the EVs produced in India.
Last month, VinFast became the third largest car manufacturer after Tesla and Toyota according to market capitalisation. VinFast’s revenue more than doubled in the second quarter on higher deliveries to domestic customers, in its first results since its market debut in August. VinFast was also valued at about $85 billion which is higher than that of US automaker Ford on its Nasdaq debut. VinFast’s second-quarter revenue rose 131.2% to $327 million. Its net loss in the quarter was $526.7 million, narrowing 8.2% from the same period last year.
First-ever Vietnamese car manufacturer to set up a manufacturing unit in India
As of June 30, VinFast, backed by Vietnam’s richest man, Pham Nhat Vuong, had sold a cumulative 18,700 electric vehicles, mostly in Vietnam, according to an 18 September filing. It sold 7,100 vehicles to GSM Green and Smart Mobility Joint Stock Co., a Vietnamese taxi company in which Vuong holds a 95% stake.
Today, if VinFast does go ahead with its investment plan then it would become the first ever Vietnamese car manufacturer to set up a manufacturing unit in India. VinFast also is looking to deliver its electric vehicles to Europe in the fourth quarter after it delivered its first EVs to United States of America earlier this year.
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