Vinfast to come to India: Will it compete with Nexon EV?
H. Karan Kumar
Updated on Sept 19, 2023 | 6 min read
VinFast, the Vietnamese electric vehicle (EV) maker, has set its sights on the Indian market, aiming to launch its two-wheelers and four-wheelers in India by the third quarter or second half of the 2024 calendar year. This move could potentially position VinFast as a strong competitor to the popular Tata Nexon EV. VinFast aims to tap into India’s growing demand for electric vehicles with its aggressive pricing, futuristic styling, and focus on EVs.
Vinfast in India:
VinFast is officially coming to India! They recently broke ground on an integrated electric vehicle manufacturing facility in the southern state of Tamil Nadu on February 25, 2024.
VinFast EV factory in Tamil Nadu, India
While they haven’t started production yet, they are committed to investing up to $2 billion in the Indian market, with an initial investment of $200 million to set up a plant for entirely knocked-down (CKD) assembly of electric vehicles. This means they will import and assemble parts in India, potentially leading to more affordable consumer pricing.
The company expects the factory to run by 2026, with 50,000 vehicles per annum production capacity. They plan to launch several models in India, including the VF7, VF8, VF e34, and VF6. These models will compete with established players like Tata Motors, which dominates the Indian electric car market.
VinFast’s Expansion Plans and Market Strategy
VinFast has already conducted dealer ‘clinics’ in Vietnam with 30-35 potential Indian dealer partners, and it is on the verge of announcing its distributor network. The company plans to import its vehicles as completely built-up units (CBUs) and will likely target a price point of around ₹18-20 lakh for its first import into India. However, import duty structures on fully built-up cars in India could increase the pricing further.
The company plans to adopt a phased approach to enter the Indian market, initially focusing on appointing dealers in large tier-1 cities and then expanding to towns and cities in the interiors. VinFast aims to establish a strong presence in the Indian automotive sector, catering to a wide range of consumers across different segments.
VinFast’s Approach to the Indian Market
To establish a strong foothold in India, VinFast is actively building its leadership team and hiring extensively to support its operations in Gurugram. The company aims to approach the Indian market strategically, capitalizing on the country’s growing automotive sector and evolving consumer preferences.
Vinfast and Nexon EV max comparison
Feature | Nexon EV Max | VinFast VF6 (Eco) |
Battery (kWh) | 40.5 | 59.6 |
Range (km) | 337.0 | 399.0 |
Power (kW) | 105.0 | 130.0 |
Top Speed (km/h) | 120.0 | Not available |
Acceleration (0-100 km/h) | 9.9 | Not available |
Charging Time (DC Fast) | 0.5 | 0.5 |
Seating Capacity | 5.0 | 5.0 |
VinFast recognises the need to adapt to the Indian market’s unique demands and requirements. The company plans to appoint dealers in critical cities, gradually expanding its reach to smaller towns and cities. By carefully analyzing market trends and customer preferences, VinFast aims to tailor its offerings to suit the Indian market.
VinFast’s Competition with Tata Motors
As VinFast enters the Indian market, it is expected to face competition from established players like Tata Motors, particularly in the SUV segment. With VinFast’s entry-level SUV potentially targeting around 10% of the market, Tata Motors will be one of its main competitors. However, VinFast’s aggressive pricing and its focus on EVs could position it as a strong contender in the Indian automotive market.
Conclusion
VinFast’s entry into the Indian EV market brings exciting prospects for the growing electric vehicle industry in the country. With its innovative product range, strategic market approach, and plans for local manufacturing, VinFast has the potential to challenge established players like Tata Motors. As the competition heats up, consumers can look forward to a broader range of EV options, ultimately driving the adoption of electric vehicles in India.
