VinFast expects import duty relaxation as EV plant construction starts in Tamil Nadu

VinFast in Tamil Nu: VinFast, Vietnamese electric vehicle manufacturer, has initiated construction on a new factory in Tamil Nu, India, with plans to commence production by mid-2023. With hope of local manufacturing facility coming online, VinFast has appealed to government to temporarily reduce import duties on its vehicles for approximately two years. This request aims to familiarise Indian customers with VinFast's products before domestic production fullyamps up.

proposed reduction in import duties, from current 100 per cent to around 70 per cent to 80 per cent for a limited number of cars, is intended to facilitate market penetration and acceptance of VinFast's offerings. Despite opposition from domestic automakers, similar to Tesla's previous requests, Indian government is deliberating on matter, with decision anunced yet.

VinFast's collaboration with Tamil Nu involves an investment of up to $2 billion, with an initial commitment of $500 million for first five years of project. manufacturing facility, slated to have an annual capacity of up to 150,000 vehicles, aligns with India's ambitious goal of achieving 30 per cent electric vehicle penetration by 2030.

Recognising nascent st of electric vehicle option in India, which accounted for only about 2 per cent of total car sales last year, government is actively working on initiatives to incentivise EV production and option. VinFast, leveraging its experience and success in Vietnam, is set to contribute to India's burgeoning electric vehicle ecosystem.

Moreover, VinFast is strategically partnering with 55 Indian dealers to establish a robust sales network and is considering introduction of its two-wheeler models in Indian market. With its agile approach and commitment to invation, VinFast aims to capitalise on evolving automotive landscape in India, positioning itself as a key player in country's electric mobility transition.

(With Reuters inputs)