Tesla’s Rival VinFast Auto Plans Major Investment in India’s Thriving EV Industry
Written by Sanjay Kumar
In a groundbreaking move, Vietnamese electric vehicle (EV) manufacturer VinFast Auto is reportedly considering a significant investment in India, positioning itself as a potential competitor to Tesla in the country’s burgeoning EV market. This development comes hot on the heels of VinFast Auto’s recent accolade as the world’s third-most valuable carmaker, making waves in the global automotive industry.
According to a report by the Economic Times, VinFast Auto is in the initial stages of discussions about establishing a manufacturing facility in India. The company is currently exploring the possibility of setting up this facility in either Gujarat or Tamil Nadu, two Indian states known for their industrial infrastructure.
While these talks are still in their preliminary phase, it is evident that VinFast Auto is eager to make its mark in the Indian market. However, the company’s precise intentions remain somewhat uncertain. It is unclear whether VinFast Auto’s investment will primarily target serving the Indian market or if it will also encompass exports to neighboring countries.
Should VinFast Auto proceed with its investment plans, it would become the first Vietnamese automaker to establish a foothold in the Indian automotive sector, a move that could reshape the dynamics of the industry in the region.
VinFast Auto’s ascent to global prominence has been nothing short of remarkable. In the previous month, the company achieved the status of the world’s third-largest automaker by market capitalization, trailing only behind industry giants Tesla and Toyota.
The second quarter of this year witnessed an impressive surge in VinFast’s revenue, which more than doubled due to increased deliveries to domestic customers. This financial achievement marked a significant milestone for VinFast Auto, as it followed the company’s successful market debut on Nasdaq in August.
VinFast Auto’s market capitalization soared to an astonishing $85 billion on its Nasdaq debut, surpassing even established U.S. automaker Ford. In the second quarter, the company reported revenue growth of 131.2%, reaching $327 million. While it still incurred a net loss of $526.7 million during this period, it demonstrated a notable 8.2% reduction in losses compared to the same quarter last year.
As of June 30, VinFast had sold a cumulative total of 18,700 electric vehicles, primarily within Vietnam. Notably, the company’s largest single customer was GSM Green and Smart Mobility Joint Stock Co., a Vietnamese taxi company in which VinFast’s primary backer, Pham Nhat Vuong, holds a substantial 95% stake.
VinFast Auto is not content with its achievements in the domestic market alone. It has ambitious plans to deliver its first EVs to Europe in the fourth quarter of this year, following its successful entry into the U.S. market earlier in the year.
With this potential investment in India, VinFast Auto aims to further solidify its position as a global player in the electric vehicle industry, setting the stage for a new era of competition in the Indian automotive landscape.
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