VinFast, which commenced construction of its inaugural manufacturing facility in India in February, may open the facility three months ahead of schedule.
The company reportedly plans to launch locally-made EVs by the end of 2025. The Economic Times, citing unnamed sources, reported that Vietnam-based VinFast had accelerated the opening of its new factory in Tamil Nadu, which is expected to be operational by March 2025, three months ahead of schedule.
According to the report, VinFast also plans to launch its first locally assembled EV during INdia's 2025 festive season. The upcoming EVs will be positioned in the premium affordable segment and priced between INR2.5-3 million, offering a range of 300-500 kilometers.
VinFast will make EVS under the completely knocked down (CKD) mode and is expected to bypass high import duties to reach price competitiveness in India's growing EV market.
VinFast's construction of the Tamil Nadu facility appears to be accelerating, as reported by Bloomberg in June. The factory is slated to open in the first half of 2025, six months ahead of schedule.
Following an agreement with the government of Tamil Nadu to invest US$2 billion in January, VinFast commenced construction on the facility in the following month. VinFast plans an initial investment of US$500 million over five years for the site, which is projected to have a capacity of producing 150,000 EVs annually, with expected employment of 3,000 to 3,500 local residents.
In addition to its ventures in India, VinFast is moving forward with plans to build a new manufacturing plant in Indonesia. Simultaneously, the company is progressing with the construction of a $2 billion manufacturing complex in North Carolina.
Despite these expansions, VinFast reported a net loss of $2.395 billion in 2023, marking a 14.7% increase from 2022. However, the company saw a substantial rise in total revenue, reaching $1.198 billion, a 91% increase compared to the previous year.
KNNIndia reported a forecast by Frost & Sullivan predicting significant localization of essential EV components in India by 2030, driven by rapid EV adoption and supportive incentive policies. However, the report highlighted that achieving complete localization of the EV supply chain in India by 2030 may face challenges due to the scarcity of specific rare earth minerals necessary for production.
