VinFast India to delay its Tamil Nadu factory inauguration due to loan talks
VinFast Auto Ltd
. is reportedly seeking a loan of up to $200 million from Indian state-owned banks as it prepares to enter the Indian car market, although the inauguration of its
Tamil Nadu factory
has been delayed to July 30, reports Bloomberg.
ETAuto earlier
stated that Vietnamese electric vehicle maker is in discussions with lenders like Central Bank of India Ltd. and Union Bank of India Ltd. to secure funding for its initial $500 million investment plan in India, aiming to establish a presence in the competitive Asian market. The company plans to launch its VF6 and VF7 models soon, followed by the VF3 in 2026, while also expanding its global footprint with a new plant in Indonesia expected by October.
VinFast
's India factory, located in Tamil Nadu, was initially scheduled to open on June 30. The company has now announced a revised inauguration date.
According to sources familiar with the matter told Bloomberg, VinFast is engaging with Indian lenders for the first time. The loan under discussion may be structured in rupees or as foreign currency through the external commercial borrowing route. The terms of the loan are still under discussion and subject to change.
The loan is part of VinFast's broader investment strategy in India. The company has earmarked $500 million for its initial foray into the country. VinFast is actively building its distribution network in India.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
26 minutes ago
- Mint
Indian airlines having more planes provide rationale for investments: AI chief Campbell Wilson
New Delhi, Jun 1 (PTI) Indian carriers having more planes in their fleets provides businesses a rationale to invest in the country's aviation space as there will be a local market as well as an export market for services and support, according to Air India chief Campbell Wilson. In an interview to PTI, Wilson said there is a lot of interest in India and a lot of people are keen to partner with Air India. "There is an air about India". The country's aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of GDP. When indirect, induced and tourism impacts are included, the total rises to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent), as per global airlines' grouping IATA, which is holding its annual general meeting in India after a gap of 42 years. "There is a lot of confidence people are drawing from the transformation of Air India but also Indian aviation. (People are more) willing to invest in India. "The fact that there is going to be a much more sizeable Indian-domiciled fleet gives all sorts of businesses a rationale to invest because there is a local market in addition to an export market for services and support. So, surely the interest is coming and I think the benefits will accrue in the years to come," the Air India CEO and MD said. More than 2,500 civil aircraft are expected to come into India in the next 20 years. Air India and IndiGo have placed orders for more than 1,000 planes in recent years. The Tata Group-owned Air India is also in the middle of a five-year transformation plan. Wilson also stressed that there is a healthy competition in India among airlines. While emphasising that there is an air about India, Wilson, who has been helming Air India for nearly three years, also said the country is having an increasing say and an increasing share of voice at the OEMs (Original Equipment Manufacturers). "The biggest aircraft orders in history have been made by the Indian carriers in the last couple of years. India is a large market and by far, the fastest growing large market in the world," he said. On Friday, IATA Director General Willie Walsh said India's place in global aviation has changed dramatically, particularly over the last decade. The country has seen record aircraft orders, impressive growth, and world-class infrastructure developments, he added. The International Air Transport Association (IATA) represents about 350 airlines comprising over 80 per cent of the global air traffic.
Mint
27 minutes ago
- Mint
Air India in talks with Boeing, Airbus for ‘major' 200 narrow-body aircraft order: Report
NEW DELHI (Reuters) -Tata Group's Air India is in talks with Airbus and Boeing for a major new aircraft order including some 200 extra single-aisle planes, topping up a mammoth deal in 2023 as the former state carrier pursues a multi-billion revamp, industry sources said. The order discussions, which two of the sources said could involve hundreds of airplanes in total spread across various sizes, expand on previously reported discussions for a further batch of large wide-body aircraft, they told Reuters. Air India, Boeing and Airbus all declined comment. Word of a potential new blockbuster order from India's flag carrier emerged as global airline bosses gathered in the world's fastest-growing aviation market for an industry summit to be addressed by Indian Prime Minister Narendra Modi on Monday. Air India placed a then-record order for 470 planes from both suppliers in 2023 and another 100 Airbus jets last year. The back-to-back plane orders come at a time when aircraft manufacturers are scrambling with supply chain issues leading to severe delays in aircraft delivery and a looming jet shortage. Getting new planes is crucial for Air India, which has suffered from years of under-investment under government ownership and is now undertaking an ambitious modernisation plan to recapture market share lost to global rivals. The exact number of narrowbody jets under the new order was not immediately clear but two sources put it in the hundreds and one said it involved a provisional total of 200 narrow-body planes, which are the workhorse of aviation fleets worldwide. (Reporting by Tim Hepher, Aditi Shah, Rajesh Kumar Singh; Editing by Elaine Hardcastle and Sophie Walker)
Time of India
30 minutes ago
- Time of India
RBI likely to cut repo rate by 25 bps on June 6 amid low inflation, say experts
NEW DELHI: The Reserve Bank of India (RBI) is likely to announce a third consecutive 25 basis points (bps) rate cut on June 6, amid easing inflation and global economic uncertainty driven by US tariff actions. With consumer price inflation remaining below the 4 per cent median target, experts believe the move would support growth during a period of external volatility, according to a PTI report. The Monetary Policy Committee (MPC), the RBI's rate-setting panel, will begin deliberations on the next bi-monthly policy on June 4. The decision is scheduled to be announced on Friday, June 6. Following 25 bps repo rate cuts in both February and April, which brought the key policy rate down to 6 per cent, the six-member MPC, led by RBI Governor Sanjay Malhotra, also changed its policy stance from 'neutral' to 'accommodative' in April. The central bank has now reduced the policy repo rate by a cumulative 50 bps in 2025 so far, prompting multiple banks to lower their External Benchmark Lending Rates (EBLRs) and Marginal Cost of Funds-Based Lending Rates (MCLR). "We do believe that given the rather benign inflation conditions and the liquidity situation which has been made very comfortable through various measures of the RBI, the MPC would go in for a 25 bps cut in the repo rate on the (June) 6th. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo The commentary on both growth and inflation will be important as there are expectations of revisions in their forecasts for both the parameters," said Madan Sabnavis, chief economist, Bank of Baroda. He also expects the RBI to provide detailed insight into global factors affecting the Indian economy, especially in light of the expiration of US tariff relief in July. ICRA's chief economist, Aditi Nayar, also projects continued monetary easing through the year, as CPI inflation is forecast to remain below 4 per cent for most of the fiscal. "A 25 bps rate cut is expected next week, followed by two more cuts over the subsequent two policy reviews, taking the repo rate to 5.25 per cent by the end of the cycle," she said. The RBI's annual report, released on Thursday reiterated the central bank's plan to manage liquidity operations in line with the prevailing monetary policy stance, ensuring sufficient liquidity for the productive sectors of the economy. The government has mandated the RBI to maintain CPI-based retail inflation at 4 per cent, with a flexibility band of plus or minus 2 per cent. Assocham Secretary General Manish Singhal also supported the case for easing, citing multi-year low inflation and overall positive macroeconomic indicators. "Though the INR is likely to come under depreciation pressure in the short term, especially if global interest rates (e.g. in the US) remain elevated, its impact will depend on the changes in global risk appetite, crude oil prices and the Fed's own monetary stance. We emphasize the importance of strategic patience over aggressive easing, given the current environment of steady growth and manageable inflation," said Singhal. Echoing similar sentiments, Signature Global founder and chairman Pradeep Aggarwal expressed hope that the RBI would offer relief to homebuyers with a rate cut. "Given that several scheduled commercial banks have been reducing their lending rates following the previous two RBI MPC outcomes, another rate cut at this juncture would act as a catalyst for increased housing demand across segments. As a result, both first-time homebuyers and investors are likely to be encouraged to enter the real estate market, further strengthening demand across the sector," Aggarwal said. Also read: RBI slaps Rs 54.78 crore in penalties on banks and NBFCs for compliance lapses in FY25 An article in the RBI's May Bulletin highlighted that domestic bond yields have declined to multi-year lows, aided by back-to-back policy rate cuts and liquidity-enhancing measures. The report noted that monetary and credit conditions are evolving in line with the RBI's accommodative policy approach, aiming to bring inflation in line with targets while bolstering growth. India's GDP growth is estimated to have dipped to a four-year low of 6.5 per cent in FY 2024–25. Meanwhile, retail inflation in April 2025 eased to 3.16 per cent- the lowest year-on-year print since July 2019. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
