VinFast reportedly eyeing a battery plant in southern India

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

Vietnam-based Vinfast is reportedly looking to set up a battery manufacturing plant in southern India, as the company plans to make cars in the country by 2026.

Reuters quoted sources saying that VinFast may establish a battery manufacturing facility in Thoothukudi, Tamil Nadu. According to the report, VinFast officials visited Thoothukudi and may plan to sell electric two-wheelers (E2Ws) and electric four-wheelers (E4Ws) in India.

According to an earlier report by the Economic Times, VinFast had been scouring land in Tamil Nadu and Gujarat for its planned manufacturing facility in India, and VinFast reportedly preferred Tamil Nadu as the state had more ports in place for EV components shipping.

Reuters quoted Vinfast's statement saying that it would reveal details of the plans at an appropriate time.

According to a company filing released in December 2023, VinFast plans to establish local manufacturing facilities in strategic markets, including the US, Indonesia, and India, to take advantage of local tax benefits and local sourcing, adding that commissioning of the Indonesia and India facilities is expected in 2026 with a total capacity of up to 50,000 cars a year in phase 1 for each facility.

Meanwhile, Ahmedabad Mirror reported that after ongoing negotiations with the Indian government, Tesla may set up its first manufacturing plant in India's western state of Gujarat in 2024. However, despite having set up an Indian subsidiary amid a plan to sell EVs in the country, BYD, the top BEV seller in the fourth quarter of 2023, has yet to progress its Indian investment plan amid a souring relationship between India and China.

Source: VinFast, October 2023