VinFast’s Billion-Dollar Bet: Unveiling New ‘Golden Opportunities’ with Xanh SM? I hope that suits your requirements and captures the essence of the original text while adding a creative twist.

VinFast, a Vietnamese electric vehicle manufacturer, is making waves with its expansion plans into the third-largest automotive market in the world: India. The company’s proactive collaboration with various state governments and the upcoming launch of its flagship VF 7 and VF 6 models signal VinFast’s official entry into the Indian market.

VinFast has committed to investing $2 billion in establishing an electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu. This strategic location offers logistical advantages for both production and export activities. In addition to Tamil Nadu, VinFast is in discussions with the governments of Telangana and Andhra Pradesh to establish additional facilities.

India is viewed as a market with immense potential for expansion by VinFast. Mr. Pham Sanh Chau, CEO of VinFast Asia, remarked, “India is one of our most important markets. First, it is the third-largest automotive market globally. Second, it offers tremendous growth potential. And third, the electric vehicle penetration rate is still low. Hence, we believe this is the opportune time to seize the opportunity and enter the market.”

VinFast demonstrates its long-term commitment to the Indian market through substantial investments and the construction of a manufacturing facility. The Thoothukudi plant is expected to have an initial capacity of 50,000 units per year, with the potential to expand up to 150,000 units annually based on market demand and export opportunities.

Mr. Chau emphasized, “Unlike some automakers who choose to import completely built-up units (CBU) to test the market before deciding to build a factory, VinFast has conducted thorough research. We believe that establishing a manufacturing facility from the outset is a strategic and necessary step for a well-planned and long-term market entry.”

VinFast also aims to leverage the existing supplier ecosystem in India, considering it a crucial aspect of its long-term development strategy. Mr. Chau stressed, “Localization is of utmost importance.”

Elaborating on this, he stated, “First, localization reduces production costs. Second, it enables us to avail of federal government incentives. And third, it brings our products closer to the domestic market, thereby enhancing our competitiveness.”

Currently, VinFast sources a certain proportion of components from Indian suppliers, although the exact percentage has not been disclosed. However, the company confirmed that some parts, such as the body-in-white and infotainment systems, will be localized from the vehicle’s launch.

VinFast is also gearing up to launch its first dealer network in India next month, but this is just the beginning. According to Mr. Chau, the company is implementing a comprehensive after-sales service strategy, which includes a third-party repair shop network to ensure convenient vehicle maintenance for customers, even when traveling outside urban areas.

In parallel, VinFast is ramping up its charging infrastructure efforts. After establishing 130,000 charging points in Vietnam, its subsidiary, V-Green, is being introduced in India to develop a nationwide EV charging network. Additionally, VinFast is collaborating with partners like Tata Power to expand its infrastructure further.

The company is still considering the public charging model in India and, if implemented, could receive support from state governments, which are actively promoting the development of electric vehicle infrastructure.

GSM’s Potential Entry

VinFast is contemplating bringing GSM, a green and smart mobility company offering an all-electric taxi service using VinFast vehicles, to the Indian market. Mr. Chau shared, “GSM has a strong presence in Vietnam, and we have launched similar services in Indonesia, Laos, and soon, the Philippines. India is definitely the next destination in our expansion plans.”

This strategy not only helps promote the brand but also creates a stable outlet for their products, especially for models like the VF 5 and VF e34, which are currently used for GSM services in Vietnam.

In addition, VinFast is planning to develop a post-sales ecosystem in India, which includes establishing a company dedicated to repurchasing, exchanging, or leasing used VinFast vehicles in the future.

“This entire ecosystem will form a solid foundation for VinFast’s long-term growth in India,” Mr. Chau emphasized. The company is also collaborating with banks to provide financial support to dealers and customers, making electric vehicles more accessible.

Beyond Automobiles

VinFast’s offerings go beyond automobiles, as the company provides a diverse range of electric mobility solutions, including electric bicycles, two-wheelers, four-wheelers, pickup trucks, and electric buses.

Mr. Chau stated, “In India, we are starting with four-wheelers, but our goal is to manufacture the entire product range.”

VinFast is in negotiations with local partners for its two-wheeler segment, exploring collaboration models such as contract manufacturing or shared production while remaining steadfast in retaining the VinFast brand.

“We also aim to introduce electric buses into the Indian market in the future,” he added.