VinFast India, an EV manufacturer, intends to expand its retail network and build a stronger brand presence across the nation.
Pham Sanh Chau, the CEO of the EV manufacturer, stated that VinFast India is presently interacting with Indian distributors and dealers.
“VinFast is dedicated to offering its Indian clientele an extensive array of top-notch solutions, designed to accommodate diverse travel requirements and budgetary constraints. To further increase the accessibility of electric vehicles, VinFast will also provide flexible sales and exceptional after-sales policies,” he said.
The action is significant since the corporation is leading the charge to engage in the Center’s E-Vehicle Policy, which permits foreign companies to import automobiles into the nation while setting up local production facilities in an effort to draw in global players.
Recently, Chau and other industry leaders met with senior officials of the Ministry of Heavy Industries to discuss the new EV policy in detail.
The company had earlier lauded the new EV scheme as it aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero-tailpipe emission vehicles.
This forward-looking policy, Chau had earlier said, will help in the introduction of a wide variety of smart, green, premium-quality SUVs at inclusive prices.
Under the new policy, the approved applicants will be required to set up manufacturing facilities in India with a minimum investment of Rs 4,150 crore or $500 million for the manufacturing of EV passenger cars (e-4W).
Besides, the manufacturing facility shall be made operational within a period of three years from the date of the issuance of an approval letter by MHI and achieve a minimum DVA (domestic value addition) of 25%.
In lieu of the investment, the applicant will be allowed to import CBUs (completely built units) of e-4Ws manufactured by them at a reduced customs duty of 15% rather than the usual 70%.
Under the scheme, e-4Ws can initially be imported with a minimum CIF (customs, insurance, and freight) value of $35,000 at a duty rate of 15% for a period of five years.
According to sources, the approved applicant will only be allowed to import 8,000 units per year, depending on the price of the vehicle.
Furthermore, the EV maker expects to start a trial production run at its Tamil Nadu-based plant in 2025.
In February, VinFast India broke ground for its first integrated EV manufacturing facility in India. The facility will span 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate. It is expected to create jobs for 3,000 to 3,500 locals.
The facility is expected to produce 50,000 EVs per year in the initial phase and has the scalability to produce 150,000 EVs per year.
Chau had said the company plans to initially invest $500 million in its India-based facility over the next five years.
VinFast was established in 2017. It owns an automotive manufacturing complex in Hai Phong, Vietnam.