Vietnamese electric vehicle (EV) maker VinFast Auto is looking for sites to set up a manufacturing facility in India and has reviewed two locations in Tamil Nadu, a report said.
Teams of Vinfast, which started making EVs in 2021, visited sites in the Manalur region, north of Chennai, and also in the state’s southernmost district Tuticorin, The Economic Times reported sources as saying.
Moneycontrol couldn’t verify the report independently.
The auto company is also set to evaluate plots in Gujarat shortly, the report added. “VinFast has been keen on Tamil Nadu and Gujarat as it needs a port. Tamil Nadu is an advantageous option for the company owing to the state’s East-West connection,” the report quoted a source as saying.
Also Read | VinFast to expand into Southeast Asia, raise more capital
Earlier this month, the company confirmed its intent to establish a manufacturing facility in India with an investment of about $200 million to start assembling vehicles by 2026 in what it a market with “tremendous potential”.
During its second0quarter earnings announcement on September 24, VinFast unveiled plans for its next phase of development beginning in 2024. One of the key strategies is the expansion of dealership networks into new market clusters, with a specific focus on entering the Indian market.
Le Thi Thu Thuy, managing director and global CEO of VinFast Auto, said on October 5, “Each facility has a planned total capacity of up to 50,000 cars (per year) in Phase I and an estimated total coverage of $150-200 million."
“We expect to participate in the tremendous potential brought by increased EV adoption in both Indonesia and India where EV penetration is currently still very low,” he added.
Founded in 2017, the Vietnamese company has ambitious plans to take on Tesla in the United States, where Elon Musk's company has over a 50 percent market share.
Also Read | VinFast eyes Ford Chennai factory as part of its India entry plans
"If (it) were to go ahead with Gujarat, its access to the East would be cut off” and therefore would lean more towards Tamil Nadu because of its better connectivity to the East Asian markets, where VinFast has interests, the ET reporter cited sources as saying.
With a reported market capitalisation of $25.7 billion, VinFast has moved quickly to emerge as the world’s 17th most valuable automaker, according to estimates.
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