Vietnam-based electric vehicle manufacturer VinFast has plans to enter the Indian market starting in 2024, according to a recent announcement by company executives. VinFast aims to bring its electric SUVs and sedans to India as part of its broader global expansion strategy.
“India is a very promising market for electric vehicles, with rapidly growing demand and favorable government policies,” said Le Thi Thu Thuy, Vice Chairwoman of Vingroup and Global CEO of VinFast. “We plan to launch several of our smart electric car models tailored specifically for Indian consumers starting in 2024.”
VinFast will be investing an estimated $200 million to start operations in India, including setting up an assembly plant, service centers, and dealership networks across major cities. The company’s initial product launch is expected to include the VF e35 and VF e36 electric SUV models which have seen strong success in Vietnam.
“Electric vehicle technology is improving rapidly and we aim to deliver products with high quality yet very reasonable pricing for the Indian market,” said Thuy at a press event in New Delhi. “We want to reach consumers not just in major metro areas but across different regions.”
VinFast stated that it has conducted extensive market research before finalizing its India entry strategy. This includes studying local consumer behaviors, competition from other electric vehicle brands, government incentives around EVs, and mapping out an optimal retail distribution model.
The company is also planning to leverage India’s robust supply chain network for components manufacturing to maintain competitive pricing. This includes exploring partnerships with local battery manufacturers to assemble battery packs and other parts in India.
“As a young yet fast-growing brand, VinFast brings fresh thinking and advanced technology that will appeal to forward-thinking Indian customers,” said Shailesh Chandra, Managing Director of VinFast India. “Our products will compete strongly when it comes to intelligent features, battery performance, safety standards, and overall ownership experience.”
VinFast will start accepting pre-orders in early 2024 in India once launch timelines get finalized for its initial EV models. The company is also looking to expand its retail presence rapidly across 30 major cities by the end of 2025.
In addition to its electric SUVs and sedans, VinFast has revealed concepts for electric buses and electric two-wheelers specifically for Asian and African markets. The company is considering India as a potential manufacturing hub for these segments also in the long run.
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Positive Outlook from Industry Analysts
The entry of VinFast in the Indian electric mobility segment is being viewed very positively by industry analysts given its ambitious plans and parent Vingroup’s scale of operations.
Several leading research firms have come out with upbeat forecasts for VinFast’s potential in the high-growth India EV industry provided it gets its product mix and pricing strategy right for the value-conscious market.
“VinFast brings expertise in smart electric mobility products that should appeal to Indian customers looking for advanced EV options,” said Karan Sethi, Senior Mobility Analyst at market research firm IDC. “They are also making the right moves by planning substantial local sourcing and manufacturing to achieve very competitive pricing.”
IDC estimates the electric car market in India to expand at a 50% CAGR rate through 2027 driven by rising eco-consciousness and supportive policies. This creates a $15 billion addressable opportunity up for grabs by global EV brands along with domestic players like Tata Motors.
According to Counterpoint Research, VinFast is entering India at an opportune time when EV adoption is increasing domestically. “VinFast’s thoroughly researched product mix can address both the value-conscious and premium EV segments in the fast-growing Indian passenger vehicle market,” said Amit Raj Gupta, Mobility Analyst at Counterpoint.
CRISIL Research also estimates that lower battery prices will achieve near price-parity for EVs versus petrol vehicles in the mid-size SUV segment by 2024 in India. This is expected to accelerate the shift of customers towards battery-powered cars over the next 5 years.
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“Favorable total cost of ownership compared to conventional fuel cars will allow EV models from new entrants like VinFast also to gain good traction if targeted at the right customer segments,” said Naveen Vaidyanathan, Director at CRISIL Research.
Overall the outlook by industry analysts remains highly positive for VinFast to establish itself as a key EV brand in India over the next 3 to 5 years. Leveraging group synergies and wise investments from the early stage, VinFast has the potential to capture good market share as the EV transition gathers momentum domestically.
