VinFast has requested India to reduce its import duties on cars for approximately two years to allow customers to become acquainted with their products as the local manufacturing plant gets underway, as per a company executive speaking to Reuters.
The Vietnam-based EV manufacturer has initiated the construction of the factory in Tamil Nadu and aims to commence production by mid-next year, initially targeting domestic sales and later expanding to exports, as informed by India CEO Pham Sanh Chau to the newswire.
According to the newswire, the company and the Tamil Nadu government are collaborating towards an investment of up to $2 billion, with an initial commitment of $500 million for the first five years.
Like Tesla, VinFast has also appealed for a reduction in India’s 100% import duty on fully assembled EVs, a proposition that hasn’t garnered favor from domestic automakers, as noted by Reuters. While India is contemplating the requests, no decision has been reached, according to a government official last month.
Chau mentioned on the sidelines of the event that they proposed a reduction in import duties to 70-80% for two years, limited to a very small number of cars, to allow customers to acclimate to the products, as reported by the newswire. He further stated that they will proceed with the construction of the manufacturing facility while awaiting the final decision of the central government.
Chau, a former Vietnamese ambassador to India, indicated that the company is closely collaborating with approximately 55 dealers to establish a sales network and may also explore the possibility of selling its two-wheeler models in the country, as reported by Reuters.