The electrification of vehicles is resulting in significant changes in the dominance structure in the automotive market. New companies are leapfrogging internal combustion technology and carving out their space in the nascent EV market. Tesla is a prime example, and so is China’s BYD, which has recently overtaken Tesla as the world’s largest EV maker by volume.
Another similar company that is trying to make its mark in the EV space is VinFast, Vietnam’s leading EV manufacturer, which was set up in 2017. It will be starting to build its Indian factory at Thoothukudi City, Tamil Nadu, today. The idea is to be in an advantageous position to tap into what is now the world’s third-largest automotive market.
The plant is being set up in partnership with the Tamil Nadu government. The VinFast venture will eventually invest up to $2 billion, with $500 million of that in the first phase of the project spanning five years from the commencement date.
The VinFast Tamil Nadu project aims to develop into a first-class electric vehicle production hub, with an annual capacity of up to 150,000 units in its full capacity. This facility would not only cater to development objectives in the Indian market but also serve export demand to South Asian, Middle Eastern and African countries.
Now, VinFast is Vietnam’s leading electric vehicle manufacturer and has global aspirations as well. VinFast has recently set up a dealership chain in the US to sell its vehicles there. At the Consumer Electronics Show (CES) 2024, it rolled out the VF3, a very small e-SUV to address the economy vehicle segment. It also showcased the big, 5m-plus long, VF Wild. The concept car is VinFast’s first attempt at making a pickup truck that broadens VinFast’s product range, and promoting sustainable mobility by making smart, safe, exciting electric vehicles accessible to everyone.
VinFast currently makes compacts, crossovers and SUVs. And while it has not announced a production commencement target date yet, it is likely to aim for the volume segments of the market.
