New Delhi, Jul 3 (KNN) In a strategic pivot, Vietnamese electric vehicle (EV) manufacturer VinFast is set to enter the Indian market with locally assembled models, departing from its initial plan to sell only imported products.

This shift comes as the company accelerates the opening of its Tamil Nadu factory, now slated for March 2025—three months ahead of schedule.

According to sources familiar with the matter, VinFast, the EV arm of Vietnam's Vingroup conglomerate, aims to launch its first locally assembled car during the 2025 festive season.

These vehicles, targeting the premium affordable segment, are expected to be priced between Rs 25-30 lakh and offer a range of 300-500 kilometers.

The decision to adopt the completely knocked down (CKD) route for market entry allows VinFast to circumvent high import duties, potentially making its products more competitively priced.

India imposes substantial import duties on fully built vehicles—100 per cent for models valued over USD 40,000 and 70 per cent for those under USD 40,000. In contrast, CKD kits attract a more modest 15 per cent duty.

An industry insider commented, "Local assembly instills greater confidence among suppliers, dealers, and buyers. The duty savings will be channeled into brand building and marketing efforts."

While VinFast's Indian venture is not contingent on the government's new EV policy announced in March, the company is closely monitoring the guidelines to assess potential incentives.

The automaker projects ambitious growth for India's electric car market, anticipating it to reach 150,000 units by year-end, up from 90,000 in 2023. VinFast aims to achieve a peak capacity of 50,000 units in its first year of operations, banking on local assembly and competitive pricing.

As the EV landscape in India continues to evolve, VinFast's entry marks another significant step in the country's transition towards electric mobility. The company is expected to unveil its detailed plans for India at the upcoming Bharat Mobility Global Expo in January 2025.

(KNN Bureau)