VinFast Takes on Tesla, Becomes Vietnam’s Answer: Forbes India

"With its smart strategies and adaptability, VinFast has the potential to carve out its own niche and earn the trust of Indian consumers," Forbes India magazine commented on VinFast's plan to build a factory in the Southeast Asian country."


Advantages of VinFast when entering India

The article in Forbes India is titled: “After Tesla, India will soon welcome another global electric vehicle company. What are VinFast’s plans?”.

Starting the analysis article, the famous magazine quotes information that VinFast – the third largest valued car company in the world – chooses India because it is the third largest car market in the world while the proportion of electric vehicles accounts for only 1%. This condition brings many potentials for development.

Forbes India: VinFast becomes Vietnam's answer to Tesla vinfast-01.jpegVF 5 Plus is believed to be one of the VinFast models sold in India.

According to Forbes, VinFast is currently studying the market and is planning to build a CKD assembly plant in India. The plant can be located in Gujarat or Tamil Nadu – the two automotive centers of India. With the CKD form, the cars will be assembled in India from imported parts and components with the lowest import tax rate of 15%.

Forbes sources said that VinFast will penetrate the Indian market with three models: VF 3, VF 5, and VF e34.

Harshvardhan Sharma, head of the automotive retail department at the Nomura Research Institute, evaluated that VinFast approaches the Indian market with a different strategy – the CKD model, contrary to Tesla’s local production strategy. “Although Tesla’s commitment to production in India is commendable, following the CKD form can bring some advantages, including faster market penetration, reduced initial investment, and flexibility in adapting to market demands. This strategy also allows VinFast to assess the market’s reaction before committing to large-scale production,” the famous financial magazine quoted the expert.

VinFast has the potential to establish a foothold in India

“Why India?” Forbes asked and believed that VinFast’s plan to expand into the Indian market coincides with the time when the Indian government is closely monitoring the entry of Chinese electric vehicle manufacturers. In the Indian market, electric vehicle brands from China currently include BYD and MG Motors.

However, according to Harshvardhan Sharma, BYD’s assertion in India is evidence that there is a demand for premium electric vehicles in India. VinFast as a newcomer can certainly take advantage of the potential market here.

Forbes India: VinFast becomes Vietnam's answer to Tesla vinfast-02.jpegVinFast has a diverse range of products that are highly potential in India.

In recent years, electric vehicles in India have shown great appeal as automakers at home and abroad begin to develop green models. Globally, automakers such as GM, BMW, and Ford are expected to spend over $500 billion to develop electric vehicles in the coming years. In India alone, automakers from Tata to Mahindra have also made efforts to develop their own models, in the context of the government of this country aiming for 30% of the total cars sold domestically to be electric vehicles by 2030.

The Indian electric vehicle market is expected to achieve a compound annual growth rate (CAGR) of 90% in this decade and reach $150 billion by 2030, bringing many opportunities for companies like VinFast.

In terms of VinFast’s ability to penetrate the market, Harshvardhan Sharma assessed: “India has a large and dynamic market with increasing demand for electric vehicles. To gain trust and connect with Indian customers, VinFast must focus on quality, reputation, reasonable prices, and put customers at the center. In addition, offering competitive prices and a diverse product portfolio will help VinFast connect with Indian consumers who value choice and affordability”, analyzed Forbes.

Therefore, Forbes analyzes that quickly expanding into potential markets like India is reasonable for automakers like VinFast as the company is intensifying its activities in the electric vehicle field and becoming “Vietnam’s answer to Tesla”.

“The Indian automobile market is diverse and full of opportunities. VinFast, with the right strategies and adaptability, has the potential to create a unique position and gain the trust of Indian consumers,” Forbes quoted Harshvardhan Sharma’s evaluation.

Anh Quân (