Tesla Rival VinFast Likely To Build Its EV Battery Plant In India

Vietnam-based electric vehicle maker VinFast, which is deemed as rival of Tesla and China’s BYD, is likely to set up its first Indian manufacturing facility in Tamil Nadu.

The company’s new plant, which will be opened in the city of Thoothukudi, will produce batteries designed for EVs, Reuters reported, citing sources close to the matter.

“Several VinFast officials have visited Thoothukudi district in Tamil Nadu to check out sites,” one of the sources told Reuters.

In September reports surfaced that VinFast had begun hiring for sales, legal and back-office jobs in India.

However, it is not clear about VinFast’s investment size and the operational timeline in Tamil Nadu.

The company is exploring opportunities to introduce both electric scooters and cars to the Indian market.

In October, VinFast revealed plans to construct assembly factories in India and Indonesia, each boasting a capacity of up to 50,000 cars annually, with an initial capital expenditure reaching up to $200 Mn. Production is slated to kick off in 2026. 

Simultaneously, Green SM, an electric vehicle taxi operator largely owned by VinFast’s founder, is gearing up to establish its presence in India, VinFast CEO Le Thi Thu Thuy told media in October. 

Meanwhile, Tesla is likely to enter India with its manufacturing plant in Gujarat soon. The EV maker’s negotiation for the establishment of its first manufacturing unit in India is in the final stage and is likely to conclude soon.

Besides, Taiwanese battery-swapping major Gogoro is also planning to ramp up its investments in India to manufacture electric two-wheelers in the country and to build a battery-swapping infrastructure to aid these vehicles in the next few years.

Recently, Gogoro and Pune-based Belrise Industries reportedly decided to part ways in their $2.5 Bn (INR 20,000 Cr) joint venture for setting up a smart energy infrastructure in Maharashtra and the latter decided to go solo in this project.

According to Vahan data as of December 29, the registrations of EVs in the country rose to 15.13 Lakh units in 2023 from 10.25 Lakh units in the previous year.

Within the EV segment, two-wheelers continue to lead the space. The registrations of two-wheeler EVs in the country grew 34% year-on-year (YoY) to 8.49 Lakh units in 2023.

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