Vietnam’s VinFast looks to start India EV operations in 2024

livemint.com:

Mint on condition of anonymity. The company has held dealer ‘clinics’ with 30-35 potential Indian dealer partners in Vietnam, and is soon going to announce its distributor network, which will display both two- and four-wheelers.

The company will import these vehicles as completely-built up units (CBUs). VinFast, which offers battery electric sport utility vehicles (SUVs) spanning the A to E segments (entry-level, compact SUV to ultra-luxury SUV) in Vietnam, will likely eye a price point in the vicinity of ₹18-20 lakh for its first import into India, one of the persons mentioned above said, adding, however, that import duty structures on fully built-up cars in India could tip that pricing higher.

Imported vehicles priced below $40,000 face an import duty of 70%, while vehicles above that price point face an import tax of 100%. While VinFast operates a mix of self-operated experience centres, direct sales and showrooms, and dealer-run showrooms in Vietnam and the US, it is looking to approach the Indian market in a phased manner, appointing dealers in large tier-1 cities first, and then branching out to towns and cities in the interiors.

“With the Indian automotive sector and consumer moving up the value chain, VinFast can position itself as not only an entry-level player, but it can also do well to have one or two products in the more high-end of the market," the other person cited above said. “So, that feedback has been given to the company, but it may choose to start off operations with a single CBU product at a more affordable price," he added.