VinFast Auto, a rising star in the electric vehicle (EV) sector from Vietnam and considered a rival to Tesla, is reportedly eyeing India for its next manufacturing hub, potentially marking a significant entry into the Indian market.

What Happened? The company, which recently secured its position as the world's third-most valuable carmaker, is in preliminary talks to establish a plant in either Gujarat or Tamil Nadu, according to the Economic Times.

While the discussions are in the early stages, VinFast is keen on making a substantial investment in India, although it remains unclear whether the focus will be on serving the domestic market or exports. If this plan materializes, it will mark VinFast as the first Vietnamese automaker to venture into the Indian market.

See also: Cipla Pioneers Drone-Delivered Medicine To Remote Areas In Himachal Pradesh

Why it Matters? VinFast, backed by Vietnam's wealthiest individual, Pham Nhat Vuong, has been making waves in the automotive industry, achieving a staggering valuation of $85 billion on its Nasdaq debut, surpassing legacy automaker Ford. The company has experienced a surge in revenue, primarily driven by robust domestic deliveries, and has been narrowing its net losses.

The company, which has sold 18,700 EVs predominantly in Vietnam, has already made its first deliveries to the U.S. and has plans to extend its reach to Europe in the upcoming quarter. This potential venture signifies VinFast's ambitious global expansion strategy and underscores the growing appeal of the Indian market for international EV makers.

Read next: This Small Cap Stock Has Slumped 26% This Year, Why Analyst Sees A Comeback