Indian EV market to welcome VinFast, Tesla to have a rival

The Indian EV market, which has recently revised its policies regarding the purchase and production of electric vehicles, is witnessing the influx of numerous leading automobile companies willing to launch their electric cars. While established brands have already made a strong presence in the market, newcomers like Tesla and Vietnam based VinFast are also set to enter India for manufacturing, highlighting the promising outlook of the Indian EV market.

While Tesla is currently in the process of scouting for a suitable location to establish its manufacturing facility, VinFast is taking proactive steps by signing a Memorandum of Understanding (MOU) with the Tamil Nadu government to set up its manufacturing plant in the southern part of the country.

VinFast versus Tesla

The prominent global EV manufacturer, Tesla, led by billionaire CEO Elon Musk, is eagerly anticipating entry into the Indian electric vehicle market. The company is currently scouting for a suitable location to establish its manufacturing facility. Reports suggest that it has received offers from the governments of Maharashtra and Gujarat to set up operations in their respective regions.

On the other hand, in February, VinFast began constructing its first fully integrated electric vehicle (EV) manufacturing facility in Tamil Nadu. This expansive site covers 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate. VinFast’s goal extends beyond production; it seeks to invigorate local economic growth through localization initiatives.

Despite its concerted efforts to penetrate the Indian Electric Vehicle (EV) segment, VinFast faces significant hurdles, as outlined in a recent report by GlobalData. These challenges include navigating a fiercely competitive market, contending with the dominance of entrenched players, and addressing the price sensitivity of Indian consumers. But, VinFast promises to launch high quality SUVs suited to the Indian needs.

The Indian automotive industry is renowned for its competitiveness, evidenced by the exits of longstanding international giants such as General Motors and Ford, who operated in the market for decades. Even industry stalwarts like Toyota and Volkswagen have struggled to carve out a substantial foothold in this dynamic market landscape.