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Time of India
3 days ago
- Automotive
- Time of India
Vietnam automaker Vinfast to build factory in India, eyeing growth in Asia
Vietnam's Vinfast on Monday inaugurated a $500 million electric vehicle plant in southern India's Tamil Nadu state, part of a planned $2 billion investment in India and a broader expansion across Asia. The factory in Thoothukudi will initially make 50,000 electric vehicles annually, with room to triple output to 150,000 cars. Given its proximity to a major port in one of India's most industrialized states, Vinfast hopes it will be a hub for future exports to the region. It says the factory will create more than 3,000 local jobs. The Vietnamese company says it scouted 15 locations across six Indian states before choosing Tamil Nadu. It's the center of India's auto industry, with strong manufacturing, skilled workers, good infrastructure, and a reliable supply chain, according to Tamil Nadu's Industries Minister T.R.B. Raaja. "This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters is what India needs to emerge as a global manufacturing hub," he said. A strategic pivot to Asia Vinfast's foray into India reflects a broader shift in strategy. The company increasingly is focusing on Asian markets after struggling to gain traction in the U.S. and Europe. It broke ground last year on a $200 million EV assembly plant in Indonesia, where it plans to make 50,000 cars annually. It's also expanding in Thailand and the Philippines. Vinfast sold nearly 97,000 vehicles in 2024. That's triple what it sold the year before, but only about 10 per cent of those sales were outside Vietnam. As it eyes markets in Asia, it hopes the factory in India will be a base for exports to South Asian countries like Nepal and Sri Lanka and also to countries in the Middle East and Africa. India is the world's third-largest car market by number of vehicles sold. It presents an enticing mix: A fast growing economy, rising adoption of EVs, supportive government policies and a rare market where players have yet to completely dominate EV sales. "It is a market that no automaker in the world can ignore," said Ishan Raghav, managing editor of the Indian car magazine autoX. . A growing EV market in India EV growth in India has been led by two and three-wheelers that accounted for 86 per cent of the over six million EVs sold last year. Sales of four wheel passenger EVs made up only 2.5 per cent of all car sales in India last year, but they have been surging, jumping to more than 110,000 in 2024 from just 1,841 in 2019. The government aims to have EVs account for a third of all passenger vehicle sales by 2030. "The electric car story has started (in India) only three or four years ago," said Charith Konda, an energy specialist who looks at India's transport and clean energy sectors for the think-tank Institute for Energy Economics and Financial Analysis or IEEFA. New cars that "look great on the road," with better batteries, quick charging and longer driving ranges are driving the sector's rapid growth, he said. The shift to EVs is mostly powered by Indian automakers, but Vinfast plans to break into the market later this year with its VF6 and VF7 SUV models, which are designed for India.. Can Vinfast Succeed Where Chinese EVs Faltered? Chinese EV brands that dominate in countries like Thailand and Brazil have found India more challenging. After border clashes with China in 2020, India blocked companies like BYD from building their own factories. Some then turned to partnerships. China's SAIC, owner of MG Motor, has joined with India's JSW Group. Their MG Windsor, a five-seater, sold 30,000 units in just nine months, nibbling Tata Motors' 70 per cent EV market share down to about 50 per cent. Tata was the first local automaker to court mass-market consumers with EVs. Its 2020 launch of the electric Nexon, a small SUV, became India's first major EV car success. Vinfast lacks the geopolitical baggage of its larger Chinese rivals and will also benefit from incentives like lower land prices and tax breaks for building locally in India. That's part of India's policy of discouraging imports with high import duties to help encourage local manufacturing and create more jobs. The push for onshore manufacturing is a concern also for Tesla, which launched its Model Y in India last month at a price of nearly $80,000, compared to about $44,990 in the U.S without a federal tax credit. "India's stand is very clear. We do not want to import manufactured cars, even Teslas. Whether it's Tesla or Chinese cars, they are taxed heavily," added Konda. An uphill battle in a tough market The road ahead remains daunting. India's EV market is crowded with well-entrenched players like Tata Motors and Mahindra, which dominate the more affordable segment, while Hyundai, MG Motors and luxury brands like Mercedes-Benz and Audi compete at high price points. Indians tend to purchase EVs as second cars used for driving within the city since the infrastructure for charging elsewhere can be undependable. Vinfast will need to win over India's cost-sensitive and conservative drivers with a reputation for quality batteries and services while keeping prices low, said Vivek Gulia, co-founder of JMK Research. "Initially, people will be apprehensive," he said. Vinfast says it plans to set up showrooms and service centers across India, working with local companies for charging and repairs, and cutting costs by recycling batteries and making key parts like powertrains and battery packs in the country. Scale will be key. VinFast has signed agreements to establish 32 dealerships across 27 Indian cities. Hyundai has 1,300 places for Indians to buy their cars. Building a brand in India takes time - Hyundai, for instance, pulled it off over decades, helped by an early endorsement from Bollywood superstar Shah Rukh Khan. VinFast can succeed if it can get its pricing right and earn the trust of customers, Gulia said, "Then they can actually do really good."
Axios
3 days ago
- Business
- Axios
Electricity costs rise amid data center boom
Electricity costs are rising nationwide — and could get even higher for some amid the explosion in data centers powering AI and more. Why it matters: Surging power bills could further stress many Americans' budgets as pretty much everything else gets more expensive, too. By the numbers: The nationwide average retail residential price for 1 kilowatt-hour of electricity rose from 16.41 cents to 17.47 cents between May 2024 and May 2025, per the latest available data from the U.S. Energy Information Administration, a gain of about 6.5%. Some states saw much larger increases, such as Maine (+36.3%), Connecticut (+18.4%) and Utah (+15.2%). Just five states saw a decrease, including Nevada (-17.7%) and Hawai'i (-7%). Between the lines: Electricity prices vary regionally and have many influences, from basic supply and demand to fuel rates and infrastructure costs. Yet many analysts point to power-hungry data centers as a driver of rising rates, especially in data center hotspots. That's partly because of data centers' immediate demand for energy, but also because grid operators are investing in new transmission lines and other gear to handle their expected proliferation — and passing those costs along to customers. What they're saying: "Anywhere you're seeing a massive takeoff in load growth, the most likely cause is data centers, and that is almost certainly going to have an impact on electric rates," says Cathy Kunkel, energy consultant at the Institute for Energy Economics and Financial Analysis. A new IEEFA analysis highlights a dramatic spike in capacity market prices set at auction by PJM — an electric grid operator covering many Mid-Atlantic and Midwest states — largely tied to data centers, like those in Northern Virginia's "data center alley." One estimate found that data centers accounted for over 60% of the increase in prices in a PJM auction held last year, the report says — representing $9.3 billion that will be passed along to customers. Zoom in: A December 2024 report from the Virginia General Assembly's Joint Legislative Audit and Review Commission found that data centers in the area are covering their own usage for now, but predicts that locals could see a $14-$37 increase in their monthly bills by 2040, before inflation. Friction point: Data centers' need for power may outstrip electric utilities' ability to feed them, the JLARC report found, slowing their growth. Meanwhile, utilities that invest in new infrastructure to power the AI boom could find themselves in trouble should that boom turn out to be a bubble. What good are a bunch of new transmission lines if there's no power-thirsty customer at the other end? Adding new generation of any kind, meanwhile, takes time and money.
New Indian Express
4 days ago
- Automotive
- New Indian Express
Vietnam automaker Vinfast opens factory in India, eyeing growth in Asia
THOOTHUKUDI: Vietnam's Vinfast on Monday began production at a $500 million electric vehicle plant in southern India's Tamil Nadu state, part of a planned $2 billion investment in India and a broader expansion across Asia. The factory in Thoothukudi will initially make 50,000 electric vehicles annually, with room to triple output to 150,000 cars. Given its proximity to a major port in one of India's most industrialized states, Vinfast hopes it will be a hub for future exports to the region. It says the factory will create more than 3,000 local jobs. The Vietnamese company says it scouted 15 locations across six Indian states before choosing Tamil Nadu. It's the center of India's auto industry, with strong manufacturing, skilled workers, good infrastructure, and a reliable supply chain, according to Tamil Nadu's Industries Minister T.R.B. Raaja. "This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters is what India needs to emerge as a global manufacturing hub," he said. A strategic pivot to Asia Vinfast's foray into India reflects a broader shift in strategy. The company increasingly is focusing on Asian markets after struggling to gain traction in the US and Europe. It broke ground last year on a $200 million EV assembly plant in Indonesia, where it plans to make 50,000 cars annually. It's also expanding in Thailand and the Philippines. Vinfast sold nearly 97,000 vehicles in 2024. That's triple what it sold the year before, but only about 10% of those sales were outside Vietnam. As it eyes markets in Asia, it hopes the factory in India will be a base for exports to South Asian countries like Nepal and Sri Lanka and also to countries in the Middle East and Africa. India is the world's third-largest car market by number of vehicles sold. It presents an enticing mix: A fast growing economy, rising adoption of EVs, supportive government policies and a rare market where players have yet to completely dominate EV sales. "It is a market that no automaker in the world can ignore," said Ishan Raghav, managing editor of the Indian car magazine autoX. . A growing EV market in India EV growth in India has been led by two and three-wheelers that accounted for 86% of the over six million EVs sold last year. Sales of four wheel passenger EVs made up only 2.5% of all car sales in India last year, but they have been surging, jumping to more than 110,000 in 2024 from just 1,841 in 2019. The government aims to have EVs account for a third of all passenger vehicle sales by 2030. "The electric car story has started (in India) only three or four years ago," said Charith Konda, an energy specialist who looks at India's transport and clean energy sectors for the think-tank Institute for Energy Economics and Financial Analysis or IEEFA. New cars that "look great on the road," with better batteries, quick charging and longer driving ranges are driving the sector's rapid growth, he said. The shift to EVs is mostly powered by Indian automakers, but Vinfast plans to break into the market later this year with its VF6 and VF7 SUV models, which are designed for India.. Can Vinfast Succeed Where Chinese EVs Faltered? Chinese EV brands that dominate in countries like Thailand and Brazil have found India more challenging. After border clashes with China in 2020, India blocked companies like BYD from building their own factories. Some then turned to partnerships. China's SAIC, owner of MG Motor, has joined with India's JSW Group. Their MG Windsor, a five-seater, sold 30,000 units in just nine months, nibbling Tata Motors' 70% EV market share down to about 50%. Tata was the first local automaker to court mass-market consumers with EVs. Its 2020 launch of the electric Nexon, a small SUV, became India's first major EV car success. Vinfast lacks the geopolitical baggage of its larger Chinese rivals and will also benefit from incentives like lower land prices and tax breaks for building locally in India. That's part of India's policy of discouraging imports with high import duties to help encourage local manufacturing and create more jobs. The push for onshore manufacturing is a concern also for Tesla, which launched its Model Y in India last month at a price of nearly $80,000, compared to about $44,990 in the U.S without a federal tax credit. "India's stand is very clear. We do not want to import manufactured cars, even Teslas. Whether it's Tesla or Chinese cars, they are taxed heavily," added Konda. An uphill battle in a tough market The road ahead remains daunting. India's EV market is crowded with well-entrenched players like Tata Motors and Mahindra, which dominate the more affordable segment, while Hyundai, MG Motors and luxury brands like Mercedes-Benz and Audi compete at high price points. Indians tend to purchase EVs as second cars used for driving within the city, since the infrastructure for charging elsewhere can be undependable. Vinfast will need to win over India's cost-sensitive and conservative drivers with a reputation for quality batteries and services while keeping prices low, said Vivek Gulia, co-founder of JMK Research. "Initially, people will be apprehensive," he said. Vinfast says it plans to set up showrooms and service centers across India, working with local companies for charging and repairs, and cutting costs by recycling batteries and making key parts like powertrains and battery packs in the country. Scale will be key. VinFast has signed agreements to establish 32 dealerships across 27 Indian cities. Hyundai has 1,300 places for Indians to buy their cars. Building a brand in India takes time — Hyundai, for instance, pulled it off over decades, helped by an early endorsement from Bollywood superstar Shah Rukh Khan. VinFast can succeed if it can get its pricing right and earn the trust of customers, Gulia said, "Then they can actually do really good." (By SIBI ARASU, ANIRUDDHA GHOSAL and RISHI LEKHI)
4 days ago
- Automotive
Vietnam automaker Vinfast to build factory in India, eyeing growth in Asia
THOOTHUKUDI, India -- Vietnam's Vinfast is due to break ground Monday on a $500 million electric vehicle plant in southern India's Tamil Nadu state, part of a planned $2 billion investment in India and a broader expansion across Asia. The factory in Thoothukudi will initially make 50,000 electric vehicles annually, with room to triple output to 150,000 cars. Given its proximity to a major port in one of India's most industrialized states, Vinfast hopes it will be a hub for future exports to the region. It says the factory will create more than 3,000 local jobs. The Vietnamese company says it scouted 15 locations across six Indian states before choosing Tamil Nadu. It's the center of India's auto industry, with strong manufacturing, skilled workers, good infrastructure, and a reliable supply chain, according to Tamil Nadu's Industries Minister T.R.B. Raaja. 'This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters is what India needs to emerge as a global manufacturing hub,' he said. Vinfast's foray into India reflects a broader shift in strategy. The company increasingly is focusing on Asian markets after struggling to gain traction in the U.S. and Europe. It broke ground last year on a $200 million EV assembly plant in Indonesia, where it plans to make 50,000 cars annually. It's also expanding in Thailand and the Philippines. Vinfast sold nearly 97,000 vehicles in 2024. That's triple what it sold the year before, but only about 10% of those sales were outside Vietnam. As it eyes markets in Asia, it hopes the factory in India will be a base for exports to South Asian countries like Nepal and Sri Lanka and also to countries in the Middle East and Africa. India is the world's third-largest car market by number of vehicles sold. It presents an enticing mix: A fast growing economy, rising adoption of EVs, supportive government policies and a rare market where players have yet to completely dominate EV sales. 'It is a market that no automaker in the world can ignore,' said Ishan Raghav, managing editor of the Indian car magazine autoX. . EV growth in India has been led by two and three-wheelers that accounted for 86% of the over six million EVs sold last year. Sales of four wheel passenger EVs made up only 2.5% of all car sales in India last year, but they have been surging, jumping to more than 110,000 in 2024 from just 1,841 in 2019. The government aims to have EVs account for a third of all passenger vehicle sales by 2030. 'The electric car story has started (in India) only three or four years ago,' said Charith Konda, an energy specialist who looks at India's transport and clean energy sectors for the think-tank Institute for Energy Economics and Financial Analysis or IEEFA. New cars that 'look great on the road,' with better batteries, quick charging and longer driving ranges are driving the sector's rapid growth, he said. The shift to EVs is mostly powered by Indian automakers, but Vinfast plans to break into the market later this year with its VF6 and VF7 SUV models, which are designed for India.. Chinese EV brands that dominate in countries like Thailand and Brazil have found India more challenging. After border clashes with China in 2020, India blocked companies like BYD from building their own factories. Some then turned to partnerships. China's SAIC, owner of MG Motor, has joined with India's JSW Group. Their MG Windsor, a five-seater, sold 30,000 units in just nine months, nibbling Tata Motors' 70% EV market share down to about 50%. Tata was the first local automaker to court mass-market consumers with EVs. Its 2020 launch of the electric Nexon, a small SUV, became India's first major EV car success. Vinfast lacks the geopolitical baggage of its larger Chinese rivals and will also benefit from incentives like lower land prices and tax breaks for building locally in India. That's part of India's policy of discouraging imports with high import duties to help encourage local manufacturing and create more jobs. The push for onshore manufacturing is a concern also for Tesla, which launched its Model Y in India last month at a price of nearly $80,000, compared to about $44,990 in the U.S without a federal tax credit. 'India's stand is very clear. We do not want to import manufactured cars, even Teslas. Whether it's Tesla or Chinese cars, they are taxed heavily,' added Konda. The road ahead remains daunting. India's EV market is crowded with well-entrenched players like Tata Motors and Mahindra, which dominate the more affordable segment, while Hyundai, MG Motors and luxury brands like Mercedes-Benz and Audi compete at high price points. Indians tend to purchase EVs as second cars used for driving within the city since the infrastructure for charging elsewhere can be undependable. Vinfast will need to win over India's cost-sensitive and conservative drivers with a reputation for quality batteries and services while keeping prices low, said Vivek Gulia, co-founder of JMK Research. 'Initially, people will be apprehensive,' he said. Vinfast says it plans to set up showrooms and service centers across India, working with local companies for charging and repairs, and cutting costs by recycling batteries and making key parts like powertrains and battery packs in the country. Scale will be key. VinFast has signed agreements to establish 32 dealerships across 27 Indian cities. Hyundai has 1,300 places for Indians to buy their cars. Building a brand in India takes time — Hyundai, for instance, pulled it off over decades, helped by an early endorsement from Bollywood superstar Shah Rukh Khan. VinFast can succeed if it can get its pricing right and earn the trust of customers, Gulia said, 'Then they can actually do really good.' Sibi Arasu contributed from Bengaluru and Aniruddha Ghosal contributed from Hanoi, Vietnam. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
The Star
30-07-2025
- Business
- The Star
Green hydrogen bubble that BP helped burst
SYDNEY: Australia's long-held ambitions to tap its abundant renewable resources and vast uninhabited landmass to become a global green hydrogen leader is fast unravelling. Despite strong government backing and significant private sector interest, at least seven big hydrogen production projects have been delayed, scaled back or cancelled in the last year. Chief among them was BP Plc's decision last week to exit a US$36bil facility in the Pilbara region of Western Australia, which had targeted starting production this decade. Around the world, project withdrawals have accelerated as developers struggle to secure customers willing to pay a premium for the fuel. Costs remain persistently high, unlike the sharp price drops seen in solar and wind that have boosted their competitiveness. That's raised concerns about the feasibility of using renewable energy to produce hydrogen that can be stored, transported and consumed like a fossil fuel to help nations meet net-zero goals. It also looks set to make Asia's goal of cutting hard-to-tackle emissions tougher to achieve. 'This isn't just an Australian issue. There has been a slowdown in development globally, in large part because the cost hasn't come down as fast as previously forecast,' said Simon Nicholas, an analyst at the Institute for Energy Economics and Financial Analysis, a think tank that seeks to accelerate the energy transition. 'I hope that the bursting of the hydrogen hype bubble is an opportunity for a reset.' There are more green hydrogen projects under development in Australia than in any other country, with a A$225bil (US$147bil) pipeline worth of proposed projects, according to the government. But only three relatively minor plants are actually operational in the country, while most others remain in preliminary planning stages. In recent years, many of the largest energy companies have tempered plans for green hydrogen as a way to better scale up renewable electricity. Plans to produce about 1.67 million tonnes of clean hydrogen had been shelved as of the end of June, according to BloombergNEF (BNEF) – over five times the amount of actual capacity. Meanwhile, just 1.9% of planned projects have secured financing or started construction. Europe, which could become one of the world's largest consumers of green hydrogen in its push to achieve climate neutrality by mid-century, has grappled to overcome high costs, forcing some projects to be abandoned despite government support. Growth of the technology in the United States is also now in doubt after Trump's One Big Beautiful Bill significantly limited tax credits to produce the fuel. A year ago, credits were expected to help lead to about 1.2 million tonnes of annual green hydrogen production by 2030, BNEF said. 'If those incentives don't exist, I don't think this industry will exist,' said Payal Kaur, BNEF's hydrogen analyst. 'There will be cancellations if the economics don't work, and the economics don't work without the credits.' In Australia, the challenges come despite strong government support and some of the world's best natural conditions to produce hydrogen using renewables. The government has committed at least A$4bil to support the green hydrogen industry to bridge the cost gap between production and market prices. However, access to most of this funding depends on developers proving commercial viability upfront, a challenge as long-term buyers remain scarce. The Australian Renewable Energy Agency is responsible for administering the government's Hydrogen Headstart programme and has so far provided more than A$370mil to 65 renewable hydrogen projects. The agency 'appreciates that the renewable hydrogen industry is nascent and will naturally experience challenges as it scales up', it said. Fortescue Ltd and Woodside Energy Ltd said this month they would withdraw from green hydrogen plans in Australia and the United States. While those announcements are disappointing, the clean fuel is essential to manufacturing and industry in a net-zero future, Australian Energy Minister Chris Bowen said. Some green hydrogen projects are still moving forward, despite the cost challenges. In Europe, climate policies are encouraging deals, such as the one between Germany's RWE AG and TotalEnergies SE to supply hydrogen to an oil refinery. Those contracts will help to underpin new production. Elsewhere, China and India are pushing ahead in a race to produce some of the world's cheapest green hydrogen. Even so, the clean fuel remains far more expensive than fossil fuels, according to BloombergNEF. For now, demand is mainly concentrated in sectors already using hydrogen, such as oil refining and fertiliser production. China also benefits from a mature domestic supply chain of electrolysers – the machines that convert water into hydrogen and oxygen – that has helped reduce project costs. In contrast, Australia depends on European-made production units, which cost multiples of the Chinese ones, according to Nigel Rambhujun, a hydrogen analyst at Rystad Energy. Australia's hydrogen dreams, meanwhile, risk being left in tatters. The current 'situation may prompt a reassessment of sourcing strategies, with greater emphasis on evaluating alternative regions', said Shintaro Onishi, a hydrogen and ammonia analyst at Wood Mackenzie. The researcher has already incorporated a 'limited future role of Australian hydrogen exports' in its outlook, he said. — Bloomberg
