Vietnam-based electric vehicle (EV) maker VinFast Auto, which became the world’s third-most valuable carmaker last month, is mulling setting up a plant in India soon, but considering its plans, it may see a bumpy ride in its India journey.
According to reports, this Tesla rival could be eyeing Gujarat or Tamil Nadu as its possible locations to set up a facility.
Currently, conversations are on at the preliminary stages but VinFast Auto is keen to enter India.
Will VinFast EV be sold locally in India?
It is, however, not clear whether VinFast will use the India unit as an export destination or if it will manufacture EVs for the Indian market as well.
In case VinFast Auto decides to invest in India, then it would be the first-ever Vietnamese auto company to set up a factory in the country.
Third highest M-Cap among auto firms
Last month, VinFast Auto achieved a milestone — it became the world’s third-largest automaker by market capitalisation or M-Cap right behind Tesla and Toyota.
VinFast’s revenue had crossed the 2x mark during the second quarter owing to a surge in deliveries to domestic customers. This is its first results since its market debut in August this year.
VinFast worth, revenue and profit target
Shares of VinFast Auto surged 700 per cent in August, even though it hasn’t sold too many cars and is yet to turn profitable.
It is now a $200-billion company, more than the combined worth of Ford and GM.
VinFast had surpassed a valuation of $85 billion during its Nasdaq debut. This was higher than that of Ford.
VinFast’s revenue during the second quarter surged 131.2 per cent to $327 million.
The auto firm’s net loss during the quarter was $526.7 million, around 8 per cent less than the same period last year.
Its owner hopes to break even in 2024 and eyes profit from the year 2025.
Who is VinFast backed by
VinFast is backed by Vietnam’s richest man Pham Nhat Vuong. The company had sold a whopping 18,700 electric vehicles, mostly locally, according to an 18 September filing by the company.
VinFast cars for Europe
VinFast has lined up plans to ship its first e-cars to Europe during the fourth quarter of this year. The Vietnamese company had completed its first tranche of deliveries in the US market earlier this year.
How many cars has VinFast sold?
VinFast hasn’t sold too many cars internationally. It built a factory in North Carolina in July and targets to sell 45,000 to 50,000 cars this year itself. VinFast’s sales forecast is just 1 per cent of what GM achieved in 2022.
The Vietnamese auto firm had sold 7,100 EVs to GSM Green and Smart Mobility Joint Stock Company, a Vietnamese taxi firm, in which Vuong holds a 95 per cent stake.
VInFast’s India car
VInFast is planning to bring in the VF e34, its first electric car, to India at a price of around Rs 21.6 lakh or $29,990.
The VF e34 uses a 42-kWh battery, which permits a range of 300 km when fully charged.
The Vietnamese automotive start-up is currently developing a range of premium electric vehicles for the global markets.
E-Vroooom’s views
With a range of just 300 kms, the price of the VinFast EV is steep for India and it will not offer a choice of cars immediately, so, initially, the company may witness a bumpy ride in its India journey.
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