Vietnam's Vinfast Plans 'Make In India' Debut With $500M Investment: Report

Vietnamese automaker VinFast is gearing up to make a splash in the Indian market with its locally assembled vehicles.

What Happened: VinFast is preparing its entry into the Indian automotive market, according to a report by The Economic Times. The company plans to assemble its vehicles in India, in line with the country’s “Make in India” initiative.

The company is reportedly planning to open a new factory in Tamil Nadu, expected to be operational by March 2025.

Vinfast is planning to invest over $500 million (around ₹4,175 crore) over the next five years to construct a 150,000-unit-a-year factory at Thoothukudi, near Chennai.

See Also: Yes Bank Shares Gain On Robust Q1 Numbers, But Flattish Sequential Growth Weighs

The company is looking to open its first locally assembled car by festive season of 2025. The electric vehicles are likely to be in the price range of ₹25 lakh to ₹30 lakh and models that could run in a range of 300-500 kilometres.

The proposed plan will help the company to save money on import bills. There is an import duty of 100% for imported car models having cost and insurance freight (CIF) value of more than $40,000 (around ₹33.40 lakh). Vinfast is looking to sell cars via the completely knocked down (CKD) route, which only levies a 15% duty.

Read Next: REC, PFC Zoom 4% As Bernstein Sees Better Return, Cheaper Valuation Than Banking Peers, Rates ‘Outperform’

Engineered by Benzinga Neuro, Edited by Ananthu CU

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: NewsTechMediaelectric vehiclesVinFast