Tesla rival VinFast of Vietnam plans to set up EV making facility in India

There is no clarity yet whether VinFast is considering exports or if the prospective production unit would solely cater to the Indian market. Discussions have taken place between VinFast Auto and multiple state governments, eventually leading to the shortlisting of Tamil Nadu and Gujarat as potential locations for the facility, the report said.

If the plan materialises, VinFast will be the first Vietnamese automaker to set up operations in the country. Founded in 2017, VinFast achieved a remarkable feat last month, securing the position of the world’s third-largest automaker by market capitalisation, following Tesla and Toyota. The company's market valuation soared to an impressive $191 billion shortly after its listing on Nasdaq, experiencing a remarkable surge of almost 700 percent, signifying the rapid growth and potential of VinFast in the global automotive market.

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However, shares of VinFast have shown significant volatility since its initial surge. Following the initial market enthusiasm, the stock experienced a massive decline of more than $140 billion, resulting in a substantial reduction in market capitalisation. As of the latest available data from Nasdaq, the company's current market capitalisation is reported to be $25.7 billion.

With a reported market capitalisation of $25.7 billion, VinFast holds the position of the world’s 17th most valuable automaker, according to certain estimates.

During its second quarter earnings announcement on September 24, VinFast unveiled plans for its next phase of development beginning in 2024. One of the key strategies in this phase is the expansion of dealership networks into new market clusters, with a specific focus on entering the Indian market.