The Vietnamese carmaker is setting up a manufacturing plant in Tamil Nadu to commence selling EVs in India by next year
VinFast has been amidst the process of setting up its manufacturing plant in Tamil Nadu as it braces to manufacture EVs in India. As is a common practice for foreign car companies, they often strike partnerships with local players to navigate the regulatory path and manage labour associations, among other things. Since a new car brand can’t be fully familiar with the local guidelines on most aspects, a local partner is often almost mandatory. At the moment, the Vietnamese car marque is in initial talks with MEIL and Adani Group.
VinFast in Talks with MEIL and Adani Group
As per the latest reports, VinFast is discussing potential collaboration with the Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL) and Adani Group. Note that the initial plan is to start rolling out EVs next year (2025). Based on the kind of support it gets from the policies and local players, it will be interesting to see if that plan comes to fruition. Note that India’s new EV policy offers tax breaks for international carmakers on investing $500 million in local manufacturing. This was a great step to make the foreign car marques interested in making cars here while contributing to the economy.
A local player like MEIL or Adani Group can be immensely valuable in managing labour relations, building a credible and cost-effective component supplier base in addition to guiding with the ever-changing governmental policies and regulations. As per the Economic Times, a source within MEIL mentioned, “They (VinFast) have approached us and initiated discussions. We are still evaluating the proposal and have not confirmed anything yet.” With regard to the Adani Group, no comments were shared by any company official.
My View
Whenever a new carmaker enters any other market globally, it becomes critical to tie up with the Indigenous companies there who know the operations, the ins and outs of the working culture, have the loyalty of the workers and possess knowledge about the local and policies. Without this, the car company can struggle in the initial phase of setting up offices. I shall keep an eye out for more details in this regard in times to come.
Also Read: VinFast VF e34 Seen on Back of Flatbed, Launch When?
