VinFast has proposed that India reduce automobile import taxes for two years so that buyers may become acquainted with the products before the local manufacturing unit is established, according to a business executive.
The Vietnam-based EV manufacturer has began construction of a facility in Tamil Nadu, with plans to begin production by mid-next year, initially for domestic sales and then for exports, according to India CEO Pham Sanh Chau.
The firm and the Tamil Nadu government plan to invest up to $2 billion, including a $500 million commitment for the first five years, according to the newswire.
Like Tesla, VinFast has also requested for a reduction to India’s 100% import duty on fully built EVs, a move that has not been held in favour by domestic automakers, Reuters noted. India has been considering the requests, but a decision has not been taken, a government official noted last month.
Chau said on the sidelines of the event that they requested for a reduction in import duties to 70-80%, for two years, and for a very limited number of cars, for customers to get used to the products, the newswire further reported.
He added that they will move ahead with the construction of the manufacturing facility while waiting for the final decision of the central government.
Chau, a former Vietnamese ambassador to India said the company is closely collaborating with around 55 dealers to establish a sales network and could also look to sell its two wheeler models later in the country, Reuters reported.
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