VinFast Auto, a Vietnam-based electric vehicle manufacturer often considered a rival to Tesla, is reportedly exploring the establishment of a manufacturing facility in India, according to sources cited by the Economic Times. The company, currently the world’s third-most valuable carmaker, is in preliminary discussions and is considering locations such as Gujarat or Tamil Nadu for the plant. This move signifies VinFast Auto’s interest in entering the Indian market. However, it is not yet clear whether VinFast intends to focus on exports or cater solely to the Indian market. If the plan materializes, VinFast Auto would become the first Vietnamese automaker to establish a presence in India.
The company reportedly held discussions with different state governments before homing in on Tamil Nadu and Gujarat as potential investment destinations, as per a source. Another source mentioned that these discussions are still in the early stages. VinFast is purportedly enthusiastic about establishing a presence in India, and the potential investment involved could be significant. However, the specifics of whether VinFast is eyeing exports or if the new manufacturing unit would exclusively serve the Indian market are yet to be clarified. In August, VinFast Auto attained the position of the world’s third-largest automaker by market capitalization, trailing behind only Tesla and Toyota. Following its Nasdaq listing, the company witnessed a significant surge of 700% in its shares, resulting in a valuation of 191 billion US dollars. However, the subsequent period has seen fluctuations, and the current market capitalization of VinFast Auto has decreased to 25.7 billion US dollars, according to data from Nasdaq.
While VinFast sold a modest 7,400 cars in the previous year, it has ambitious sales projections for the current year, targeting a range between 40,000 and 50,000 cars as it expands its market beyond Vietnam. In a significant move, VinFast inaugurated its first American factory in North Carolina on July 28, covering an expansive 1,800 acres. The initial phase of the plant is expected to achieve an annual production capacity of 150,000 vehicles.
VinFast Auto gained global attention last month when it became the world’s third-largest automaker by market capitalization, trailing only Tesla and Toyota. In the second quarter, VinFast’s revenue more than doubled, driven by increased deliveries to domestic customers. The company, backed by Vietnam’s wealthiest individual, Pham Nhat Vuong, achieved a valuation of approximately $85 billion on its Nasdaq debut in August, surpassing the market capitalization of traditional U.S. automaker Ford. VinFast’s Q2 revenue rose by 131.2% to $327 million, with a net loss of $526.7 million, narrowing 8.2% compared to the same period the previous year. As of June 30, VinFast had sold a cumulative total of 18,700 electric vehicles, primarily in Vietnam, according to a filing on September 18. The company has also sold 7,100 vehicles to GSM Green and Smart Mobility Joint Stock Co., a Vietnamese taxi company in which Pham Nhat Vuong holds a 95% stake.