VinFast, a Vietnamese premium electric vehicle manufacturer, is looking for options to break into the Indian market for high-speed electric two-wheelers, the Economics times quoted Pham Sanh Chau, the company’s chief executive, as saying. VinFast may consider a technical alliance or contract manufacturing partnership with an Indian two-wheeler maker, he said.
“We have already started discussions with a number of manufacturers on various models of cooperation because our objective is finally to achieve maximum localisation,” said Chau. “I understand that India is the number one two wheeler market. You can see our fleet of six models. We are very successful in Vietnam.”
A part of Vietnamese conglomerate, Vinfast, made its debut at New Delhi on Wednesday at the auto show showcasing its range of electric cars and two-wheelers. The company is set to start selling two e-SUV models—VF 6 and VF 7—from the second half of the year which will be assembled at its upcoming facility in Tamil Nadu.
The carmaker's arrival into India is a significant step toward its worldwide goals and demonstrates its intention to participate in the quickly expanding EV market in that nation. The company that makes the Evo, Klara, Feliz, and Vento e-scooters is undoubtedly trying to break into the Indian electric two-wheeler industry at a time when the market is becoming more competitive.
With the introduction of a new group of established two-wheeler firms, including as market leaders Honda Motorcycle and Scooter India and Suzuki Motorcycle India, on the one hand, and the incumbents' increasing volume on the other, the Ola Electric-led segment is expected to witness more activity. In 2024, sales of high-speed e-two-wheelers increased by over one-third to 1,148,529 units, according to the Federation of Automobile Dealers Associations.
VinFast’s facility in Tamil Nadu, which will be able to produce up to 50,000 e-cars per year, has enough space for setting up a two-wheeler assembly line, Chau said. However, for the time being, the automaker is “also exploring the possibility of working with other local manufacturers in order to produce two wheelers,” he added.
For now, the Hai Phong-based EV maker has kept all options open, he said. This includes using the under-utilised capacity of Vinfast in other markets, setting up a new assembly line in the Indian facility or forge a technical alliance with one of the existing two-wheeler companies in India, said Chau.
“We are working on all fronts, whichever suits us best in terms of providing the quality product to the customer at the right price, we will move ahead with that. It is also important for us to understand the Indian market and its specific requirements. We do not want to bring a model which customers should consider as imposed,” he said.
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!
