Vietnamese electric vehicle manufacturer VinFast Auto (NASDAQ:VFS) is entering India’s growing EV market with two premium SUVs, following strong third-quarter 2024 delivery growth and significant financial backing from its founder.
The Nasdaq-listed company unveiled its VF6 and VF7 models at the India Auto Show in New Delhi, planning to challenge established players like Mahindra & Mahindra and BYD (OTC:BYDDF) (OTC:BYDDY).
VinFast will invest $500 million over five years to build a car and battery factory in Tamil Nadu state, with an initial capacity of 50,000 units annually, expandable to 150,000, Reuters reported.
“We are turning our focus to India – our next growth frontier,” said Pham Sanh Chau, VinFast’s Asia CEO.
The expansion comes as VinFast reported 21,912 vehicle deliveries in the third quarter of 2024, up 115% year-over-year, though with continuing losses. The company secured $3.5 billion in potential funding through 2026, including $2.1 billion in grants from CEO Pham Nhat Vuong.
Like Tesla Inc. (NASDAQ:TSLA), VinFast is seeking reduced import duties while its factory is under construction. Electric vehicles currently represent 2.5% of India’s 4 million annual car sales, with the government targeting 30% by 2030.
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