VinFast requests temporary reduction in India's EV import duties
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Hanoi: Vietnamese electric vehicle manufacturer VinFast has appealed to India for a temporary reduction in import duties on its cars for approximately two years.
The request aims to familiarise customers with VinFast's products while the company establishes a local manufacturing plant.
VinFast has initiated the construction of a factory in Tamil Nadu, with plans for production to commence by mid-next year, initially for domestic sales and subsequently for exports.
VinFast CEO for India, Pham Sanh Chau, explained, "We proposed a reduction of import duty tax for instance by bringing it to 70% to 80% just for two years and for a very limited number of cars in order for the customers to get used to our products." The central government is currently evaluating the proposal.
Despite awaiting a final decision, VinFast is proceeding with the construction of its manufacturing facility.
VinFast, akin to Tesla, has also sought a reduction in India's 100% import duty on fully-built electric vehicles (EVs). However, this request has faced opposition from domestic automakers. While India, the third-largest global vehicle market, is considering the requests, no decision has been made, according to a government official.
The Tamil Nadu project, involving an investment of up to $2 billion, with an initial commitment of $500 million for the first five years, aims to produce up to 150,000 vehicles annually. Pham Sanh Chau highlighted that VinFast is already collaborating with around 55 Indian dealers to establish a sales network and may explore selling its two-wheeler models in the country in the future.
"As a startup company, we move fast," Pham Sanh Chau remarked during VinFast's groundbreaking ceremony in the Thoothukudi district.