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VinFast To Enter Indian Market, Could Use Ford’s Facility

Harsh Kashyap by Harsh Kashyap
1 year ago
in Electric Vehicle (EV) News
A A
VinFast to enter India with manufacturing plant in Chennai, Tamil Nadu

VinFast to enter India with manufacturing plant in Chennai, Tamil Nadu

The Vietnamese auto giant, VinFast is about to enter the Indian market with its production factory in Tamil Nadu. In fact, it was also considering dialogues to acquire Ford’s Chennai plant a few months ago. But that deal didn’t go through. Nevertheless, the plans to establish a factor around Thoothukudi in Tamil Nadu seem almost imminent. Tamil Nadu has a reputation for being one of the best states for automobile manufacturing. There are tons of OEM suppliers and ancillaries who have set up shops in this state. Let us deep dive into the details of this exciting news.

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VinFast Plans to Setup Factory in Tamil Nadu

There are various aspects of this potential development. Some reports suggest that VinFast will use this facility to fabricate batteries for EVs. Some other rumours say that the Vietnamese carmaker will assemble EVs and electric two-wheelers here. For all we know, it could end up doing everything. However, it has to first establish demand and test the waters first. Additionally, it could even export cars and batteries from India. Depending on the response, it could alter its strategies in such a way so as to maximize its business prospects. There have been no formal announcements from either VinFast or the Tamil Nadu government.

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Production Capacity of 100,000 Units

VinFast intends to establish a manufacturing plant in India with a capacity of at least 100,000 units. Their strategy involves initially serving the premium market segment by importing fully assembled vehicles. The subsequent plan is to enter the core B-segment, anticipating substantial sales in the future. Originating in Vietnam, VinFast has achieved considerable success and expanded its presence to the United States and Europe. Emphasizing their commitment to sustainable mobility, their electric vehicle lineup includes models like the VF e34, VF 8, VF 5, and VF 9.

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VinFast VF8
VinFast VF8

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Author’s Note

VinFast’s consideration of the Ford Chennai factory signifies a major move in their ambitious entry into India, going beyond merely establishing a domestic presence. Their vision is to transform India into a key export hub, leveraging Tamil Nadu’s automotive ecosystem while prioritizing cost-effective strategies. Ford’s response adds more clarity to the ongoing discussions regarding the Chennai plant. The ultimate decision by VinFast holds the potential for exciting developments for Indian EV enthusiasts in the near future. Keep an eye out for further updates on this intriguing development.

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