VinFast India finally unveiled the VF7 and the VF6 at the Bharat Mobility Expo. The VF7 is a premium, five-seater electric SUV from the Vietnamese carmaker that is scheduled for launch in the second half of this year.
While some of VinFast’s more premium offerings such as the VF8 and VF9 have been designed by the revered house of Pininfarina, the VF7 has been designed in-house and will likely be the first car launched in India. Given that its launch is scheduled after the completion of the manufacturer’s integrated battery and manufacturing plant in Thoothukudi, Tamil Nadu, it will be locally assembled. Much like all its other offerings, the VF7 features a prominent, vertical V at the front, comprising body-wide DRLs placed right above a large rhomboidal grille underneath. It’s a departure from the sealed-off front-end design that’s a norm with EVs. The headlamp units are placed parallel to the air vent/grille and features a very clean design, with a robust shoulder line, flared wheel arches and an overall minimalistic design.
On the inside it features a floating infotainment unit, a massive 15-inch touchscreen infotainment unit, an HUD, a panoramic sunroof, eight airbags, electronic stability control, Level 2 ADAS – the works. Powering this SUV is a massive 75.4 kWh lithium-ion battery which is available in single and dual motor configuration, with the latter making 349 hp and 500 Nm of torque.
What is VinFast?
The Vietnamese EV maker is part of Vietnam’s largest private conglomerate, VinGroup. The EV maker, which is already operating in 12 countries across three continents, has a penchant for rapid expansion and setting-up plants. Outside of Vietnam, India is the third market where Vinfast has set up a manufacturing unit, with Indonesia and the United States being the other markets. VinFast Asia CEO Pham Sanh Chau has emphasised in a sit down interview with Moneycontrol that the OEM’s integrated battery and assembly plant in Thoothukudi has been selected keeping in mind an export strategy that involves catering to the right-hand drive market.
Vinfast’s production plant in Tamil Nadu, is scheduled to see completion in the second half of the year. As such, the brand hasn’t announced the pricing for the VF7, which, given its battery size and extensive list of features, will compete with other luxury carmakers. The Vietnamese EV manufacturer has signed an MOU with the Tamil Nadu Government with an investment of Rs 4000 crore which is set to bring 3500 jobs to the state, with the plant targeting a production capacity of 150,000. According to VinFast India’s Deputy CEO Ashwin Patil, in its first phase, the plant is looking at a production capacity of 50,000 EVs. “We are still studying the market,” says Patil, when asked about the extent of localisation they can accomplish in the first phase of investment. According to the MoU the brand is to achieve 50% localisation within a stipulated three year period.
VinFast’s investment came-in shortly before the Central Government announced its renewed EV policy which dictates that a brand must invest $500 million (Rs 4000 crores) in setting-up a local manufacturing plant in order to avail the benefit of importing over 8000 models at a reduced import duty of only 15%. Although it is unclear whether VinFast will be able to utilise that incentive, Chau, a former diplomat, is very optimistic and grateful for the government’s support at both central and state level. “I think that in any country, the federal government will find a way to support new entrants, right? We bring investment, we bring funding, we bring great jobs, technology and heavy localisation” says Chau. Lowered import duty would allow VinFast to bring in a greater variety of models and therefore assess the demand in India a lot better.
Chau also mentioned that given India’s significance as the third largest market in the world, it plans to invest in establishing infrastructure, possibly through its sister concern, V-Green which has already set-up a country-wide charging network in Vietnam and is in the process of doing so in Indonesia. Patil also stated that in order to differentiate itself from existing luxury carmakers in India, with stronger brand equity, the brand is considering a variety of sales models including a battery leasing/subscription plan. While the model has thus far only had a use case with entry-level to mass market EVs in India (MG Windsor, MG Comet) Chau confirms that it has been very successful in Vietnam. He also states that Vinfast will offer a 10 year warranty over battery packs, which, according to Patil, will also help mitigate the issue of residual value.
With the factory likely to see completion towards the end of H1 or the beginning of H2, as per Chau, the pre-booking for the VF7 and the VF6 is set to begin in the pre-festive period.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
