VinFast Competes with Tesla, Becomes Vietnam’s Response: Forbes India

Advantages of VinFast when entering India

An article in Forbes India entitled “After Tesla, India will soon welcome another global electric vehicle company. What are VinFast’s plans?”

Starting the analysis article, the renowned magazine quotes information that VinFast – the third most valuable car company in the world – has chosen India due to it being the third largest car market in the world, with electric vehicles accounting for only 1%. This condition brings great potential for development.

VF 5 Plus is believed to be one of the VinFast models sold in India.

According to Forbes, VinFast is currently studying the market and planning to build a CKD assembly plant in India. The plant could be located in Gujarat or Tamil Nadu – India’s two automotive centers. With the CKD form, cars will be assembled in India from imported parts and components with the lowest import tax rate of 15%.

Forbes sources said that VinFast will enter the Indian market with three models: VF 3, VF 5, and VF e34.

Harshvardhan Sharma, Head of the Automotive Retail Department at the Nomura Research Institute, evaluated that VinFast approaches the Indian market with a different strategy – the CKD model, contrary to Tesla’s local production strategy. “Although Tesla’s commitment to production in India is commendable, following the CKD form can bring some advantages, including faster market penetration, reduced initial investment, and flexibility in adapting to market demands. This strategy also allows VinFast to assess the market’s reaction before committing to large-scale production,” the renowned financial magazine quoted the expert.

VinFast has the potential to establish a foothold in India

“Why India?” Forbes asked, and they believe that VinFast’s plan to expand into the Indian market coincides with the time when the Indian government is closely monitoring the entry of Chinese electric vehicle manufacturers. In the Indian market, electric vehicle brands from China currently include BYD and MG Motors.

However, according to Harshvardhan Sharma, BYD’s success in India is evidence that there is a demand for premium electric vehicles in India. VinFast, as a newcomer, can certainly take advantage of the potential market here.

VinFast has a diverse range of highly potential products in India.

In recent years, electric vehicles in India have shown great appeal as both domestic and international automakers begin to develop green models. Globally, automakers such as GM, BMW, and Ford are expected to spend over $500 billion to develop electric vehicles in the coming years. In India alone, automakers from Tata to Mahindra have also made efforts to develop their own models, in the context of the Indian government aiming for 30% of the total cars sold domestically to be electric vehicles by 2030.

The Indian electric vehicle market is expected to achieve a compound annual growth rate (CAGR) of 90% in this decade and reach $150 billion by 2030, bringing many opportunities for companies like VinFast.

In terms of VinFast’s ability to penetrate the market, Harshvardhan Sharma assessed: “India has a large and dynamic market with increasing demand for electric vehicles. To gain trust and connect with Indian customers, VinFast must focus on quality, reputation, reasonable prices, and put customers at the center. In addition, offering competitive prices and a diverse product portfolio will help VinFast connect with Indian consumers who value choice and affordability,” Forbes analyzed.

Therefore, Forbes analyzes that quickly expanding into potential markets like India is reasonable for automakers like VinFast since the company is intensifying its activities in the electric vehicle field and becoming “Vietnam’s answer to Tesla.”

“The Indian automobile market is diverse and full of opportunities. VinFast, with the right strategies and adaptability, has the potential to create a unique position and gain the trust of Indian consumers,” Forbes quoted Harshvardhan Sharma’s evaluation.

Anh Quân (forum.autodaily.vn)