VinFast Auto’s India CEO, Pham Sanh Chau, has praised India’s newly introduced electric vehicle (EV) policy, highlighting its potential to spur the introduction of premium-quality SUVs in the Indian automotive landscape.
“India’s forward-looking EV policy sets the stage for the introduction of a diverse range of smart, eco-friendly, premium SUVs, at competitive prices, coupled with exceptional aftersales support,” Chau stated in a recent announcement. “With a steadfast commitment to long-term growth in India, we have earmarked an investment of $500 million, including the establishment of an electric vehicle manufacturing facility in Tamil Nadu,” Chau elaborated.
Key Highlights of India’s New EV Policy and Investment Criteria
The policy entails a significant reduction in import duties on select electric cars to 15% for a period of five years, contingent upon automakers committing a minimum investment of Rs 4,150 crore (US$500 million) to establish manufacturing operations in India within a three-year timeframe. VinFast has commenced the construction of its inaugural integrated EV manufacturing facility in Thoothukudi, Tamil Nadu, with plans for substantial investment in subsequent phases.
Global Expansion Strategy and Market Outlook
Recognizing India as a pivotal market for its global expansion endeavors, VinFast acknowledges the nation’s stature as the world’s third-largest passenger vehicle market. The automaker’s widespread presence across various international territories, including North America, Europe, and its native market Vietnam, underscores its commitment to delivering innovative electric car models.
Impact on Global Carmakers and Investment Incentives
India’s revised import duty structure for electric vehicles is poised to facilitate the entry of prominent global car manufacturers such as Tesla while providing investment incentives to entities like VinFast, Jaguar Land Rover, and Foxconn. “We highly commend the Indian Government’s new EV scheme as it aims to spur significant investments in manufacturing, foster competencies and upskilling, establish a robust supply chain, and offer consumers world-class, zero tailpipe emission vehicles,” Chau emphasized.
VinFast’s Production Roadmap and Export Strategy
With production slated to commence in 2026 at its Tamil Nadu facility, VinFast aims to cater to both domestic demand and capitalize on India’s strategic positioning as an export hub. The automaker’s phased approach may initially involve importing fully assembled units before transitioning to localized production, aligning with evolving market dynamics and regulatory imperatives.
