The Los Angeles Post
California & Local U.S. World Business Lifestyle
Today: February 17, 2025
Today: February 17, 2025

Vietnam's VinFast to build a $2 billion EV plant in India as part of its global expansion

Vietnam India Vinfast
January 08, 2024

HANOI, Vietnam (AP) — Vietnamese automaker VinFast says it plans to spend up to $2 billion to build an electric vehicle factory in India, the world’s third-largest auto market by sales.

The factory in southern India’s Tamil Nadu state will be the company’s first foray into India and follows VinFast's launch of sales in the United States and other major markets.

The plan highlights the company’s commitment to a “vision of a zero-emission transportation future,” Tran Mai Hoa, the company's deputy CEO of sales and marketing, said in a statement.

VinFast said it is committing $500 million in the first phase of construction and plans to transform the region around port city of Thootukudi into a “first-class electric vehicle production hub.” The factory will have a capacity to roll out 150,000 cars annually, it said. It gave few other details.

Vietnam's VinFast to build a $2 billion EV plant in India as part of its global expansion
Vietnam India Vinfast

VinFast is part of Vingroup, a sprawling conglomerate that began as an instant noodle company in Ukraine in the 1990s that was founded and is run by Vietnam's richest man, Pham Nhat Vuong.

This will be VinFast's first foray into India and is part of a global expansion that has included exports of EVs to the United States. It is building a $4 billion EV factory in North Carolina, where production is slated to begin this year.

The company aims to be selling in 50 markets worldwide by the end of this year. In October, it said it plans to build a $400 million electric vehicle factory in Indonesia. It has started shipping EVs made in Vietnam to neighboring Laos to serve as a fleet for Green SM, an EV taxi operator that is mostly owned by VinFast’s founder.

Vietnam's VinFast to build a $2 billion EV plant in India as part of its global expansion
Vietnam India Vinfast

Last year, VinFast listed its shares on Nasdaq, seeing them balloon in value with its market value shooting briefly above those of General Motors Corp. and Ford Motor Co. in late August. But investor enthusiasm has cooled down and the company lost more than $1.4 billion in the first three quarters of 2023.

While it has struggled to sell its EVs in the U.S. and its early cars have received bad reviews, the company maintains that if it can succeed in the crowded and competitive American market, it can succeed anywhere.

India is one of the fastest-growing electric vehicle markets in the world. But more than 90% of its 2.3 million electric vehicles are cheaper and more popular motorbikes, scooters, and rickshaws. The government has launched a $1.3 billion federal plan to encourage EV manufacturing and provide discounts for customers.

The plan is a key part of an effort by Indian Prime Minister Narendra Modi, who is seeking to win a third term in an election this year, to create manufacturing jobs in India.

___

Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

Related Articles

Americans could pay a high price for Trump’s reciprocal tariffs Elon Musk leads an offer to buy ChatGPT’s parent company for nearly $100 billion Affirm soars as strong holiday shopping powers BNPL lender's surprise profit About 500 Samsung India factory workers hold sit-in in latest dispute, sources say
Share This

Popular

Asia|Business|Economy|Europe|Finance|Stock Markets

HSBC investors back CEO's investment banking retrenchment

HSBC investors back CEO's investment banking retrenchment
Asia|Political|World

China condemns sailing of Canadian warship in Taiwan Strait

China condemns sailing of Canadian warship in Taiwan Strait
Asia|Business|Economy|Finance|Political|Stock Markets|Technology

Dollar, tech and tariff delays fuel rotation plays

Dollar, tech and tariff delays fuel rotation plays
Asia|Celebrity|Entertainment

South Korean actress Kim Sae-ron found dead at home, police official says

South Korean actress Kim Sae-ron found dead at home, police official says

Technology

Asia|Business|Economy|Finance|Political|Stock Markets|Technology

Dollar, tech and tariff delays fuel rotation plays

Dollar, tech and tariff delays fuel rotation plays
Business|Economy|Political|Technology|US

What changes to the CHIPS act could mean for AI growth and consumers

What changes to the CHIPS act could mean for AI growth and consumers
Health|Lifestyle|Political|Technology

What I found when I tried to unplug from social media

What I found when I tried to unplug from social media
Business|Crime|Political|Technology|US

Steve Bannon is playing MAGA enforcer from the outside. Is the White House listening?

Steve Bannon is playing MAGA enforcer from the outside. Is the White House listening?

Electric Vehicles

Asia|Crime|World

At least 15 dead after stampede at New Delhi railway station, city's chief minister says

At least 15 dead after stampede at New Delhi railway station, city's chief minister says
Business|Science|Technology|US

OpenAI board rejects Elon Musk-led $97 billion purchase offer

OpenAI board rejects Elon Musk-led $97 billion purchase offer
Asia|Business|Economy

HBL, S&P Global launch Pakistan's first manufacturing PMI

HBL, S&P Global launch Pakistan's first manufacturing PMI
Asia|Business|Finance|Stock Markets|Technology

Eneos seeks up to $3 billion in biggest Japan IPO since 2018

Eneos seeks up to $3 billion in biggest Japan IPO since 2018