VinFast walks Tesla route in India, seeks import duty cut for electric cars

Vietnamese electric vehicle (EV) manufacturer VinFast has approached the Indian government with a request to temporarily reduce import duties on its cars for approximately two years, a report by Reuters stated.

This move aims to facilitate customer acceptance of VinFast’s products until the company’s local manufacturing plant becomes operational.

The request aligns with VinFast’s strategy to establish a presence in India, similar to the approach taken by American EV giant Tesla, which had also expressed interest in a duty reduction but faced a denial from the Indian government.

VinFast is currently in the process of constructing a manufacturing facility in the southern state of Tamil Nadu. The company’s India CEO, Pham Sanh Chau, has indicated that production is slated to commence by mid-2023, initially focusing on domestic sales before venturing into exports. VinFast’s investment plans in Tamil Nadu, in collaboration with the state government, entail a total investment of up to $2 billion, with an initial commitment of $500 million for the first five years of operations.

VinFast, akin to Tesla, has urged the Indian government to reconsider the 100% import duty on fully-built EVs, a stance that has been met with opposition from domestic automakers. While India, as the world’s third-largest vehicle market, is contemplating the requests, no definitive decision has been reached yet, as per a government official.