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Business Standard
11 hours ago
- Automotive
- Business Standard
VinFast's ₹16,000-cr EV plant in TN misses out on India's incentive scheme
Vietnam-based electric vehicle manufacturer VinFast's $2 billion (₹16,000 crore) investment in Tamil Nadu failed to qualify for incentives under the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India'. Officials in the government explained that the scheme mandates investments to be capitalised in the applicant's books after the date of approval. This means that equipment and machinery must be put into use only after an applicant has been formally approved under the scheme. Investments made prior to approval do not count towards eligibility, news agency PTI reported. VinFast's plans and expansion strategy VinFast, the electric vehicle division of Vietnamese conglomerate Vingroup, is in the process of setting up its $2-billion manufacturing facility in Thoothukudi, Tamil Nadu. The company is also in talks with the governments of Andhra Pradesh and Telangana to expand its footprint further within India. VinFast aims to launch its VF7 and VF6 models in the Indian market ahead of the festival season this year. The company targets an annual production capacity of 150,000 electric vehicles in India over the next few years, with plans to export these vehicles to markets in West Asia and Africa. An official speaking to PTI said, 'They [VinFast] have already capitalised the investment so they will not qualify based on that investment for benefits under the scheme. They [VinFast] will have to make a fresh investment of ₹4,150 crore to qualify under the scheme. They are urging us to consider the investment already made, which we cannot accept.' Scheme guidelines and import concessions The recently announced guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India specify that approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers with a minimum CIF value of $35,000 at a reduced customs duty rate of 15 per cent. This concession is valid for five years from the date of application approval. To remain eligible, applicants must invest at least ₹4,150 crore in accordance with the scheme's provisions. The Scheme to Promote Manufacturing of Electric Passenger Cars was officially notified on March 15, 2024, as part of India's broader efforts to boost electric vehicle production domestically.
The Hindu
12 hours ago
- Automotive
- The Hindu
‘Ideal location, talent pool and govt. support drove VinFast's decision to set up plant in T.N.'
Thoothukudi's strategic location, Tamil Nadu's talent pool, and government support were the key factors behind VinFast's decision to set up its manufacturing plant in the State, VinFast Asia CEO Pham Sanh Chau said. The Vietnamese carmaker is set to begin the production of its VF7 and VF6 models at the Thoothukudi plant in July, while bookings will open in June. During the Global Investors Meet in Chennai last year, VinFast inked an MoU with the Tamil Nadu government for an investment of ₹16,000 crore in multiple phases for manufacturing EVs in Thoothukudi. Speaking to The Hindu in Hanoi recently, Mr. Chau said, 'We visited six States and inspected 15 locations before we decided to select Thoothukudi. Since we want to serve not only the domestic market, but also the external market, we need to be located very close to a seaport and an airport. Thoothukudi satisfies these requirements.' Mr. Chau said Tamil Nadu had an impressive pool of talent. VinFast Vietnam employed a large number of Indian engineers, the majority of whom were from Tamil Nadu, he said, adding that the State was also a hub for suppliers. 'The government of Tamil Nadu has been extremely helpful. Whenever we propose anything, they make the effort and satisfy our requirements. We cannot build a factory in 15 months without the kind, continuous and generous support from the government of Tamil Chief Minister M.K. Stalin himself, his Cabinet, and especially Minister for Industries T.R.B. Rajaa. So, that is why…[though] we were approached by many State governments, we made a final call to invest in Tamil Nadu,' he said. Responding to Mr. Chau's comments, Mr. Rajaa said, 'VinFast's integrated factory in Thoothukudi has laid the foundation for a new green industrial cluster in south Tamil Nadu. Along with the solar cell and green hydrogen projects, this factory will bring renewed economic vigour to the region.' According to him, the VinFast project is creating high-quality jobs for local youth through targeted upskilling under Naan Mudhalvan, while also enabling a thriving MSME ecosystem to support the EV value chain. 'This cluster approach is focused on sustainability and inclusivity. It aims to transform Thoothukudi into a next-generation manufacturing and export hub. With its proximity to the port, the region is set to become a gateway for exports,' he added. According to him, Tamil Nadu's focus remains on equitable industrial development, and VinFast's investment stands as an example of how the government is creating global opportunities across the State, ensuring distributed growth. (The writer was in Hanoi on the invitation of VinFast).
Time of India
15 hours ago
- Automotive
- Time of India
VinFast's $2 billion Tamil Nadu investment won't qualify for India's electric vehicle sops
NEW DELHI: VinFast's ambitious $2 billion (Rs 16,000 crore) electric vehicle project in Tamil Nadu has hit a regulatory roadblock. Officials clarified Monday that the investment, already capitalized by the Vietnam-based EV maker, will not be eligible for benefits under India's newly announced Scheme to Promote Manufacturing of Electric Passenger Cars. Why? The guidelines, released this week, mandate that only investments made after approval under the scheme will count toward incentives. "They (VinFast) have already capitalised the investment so they will not qualify based on that investment," an official told PTI. "They will have to make a fresh investment of Rs 4,150 crore to qualify." VinFast, part of Vietnam's Vingroup, is setting up its India plant in Thoothukudi and is reportedly in talks with Andhra Pradesh and Telangana to expand further. The company plans to launch its VF6 and VF7 models in India by the upcoming festival season and scale up production to 1.5 lakh EVs annually, part of a broader strategy to export to the Middle East and Africa. While VinFast is now urging the Indian government to consider its prior investment, officials insist that equipment must be 'put to use' only after the date of scheme approval to be eligible. The application window for the scheme will open in the coming weeks and remain open for 120 days or more. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm Undo Under the scheme, approved companies will also be allowed to import fully built electric four-wheelers (CBUs) priced above $35,000 at a concessional customs duty of 15% for five years. Announced on March 15, 2024, the policy aims to woo global automakers while ensuring they commit significant fresh capital to local EV production. For VinFast, that means starting over, on paper, at least. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
17 hours ago
- Automotive
- Time of India
Asian underdog & global biggies hit accelerator when Musk dodges desi market challenge
As India's EV race heats up, Vietnamese giant Vingroup is throwing its hat into the ring through its EV arm VinFast—just as Elon Musk 's Tesla , after years of sitting on the fence, gears up for its long-awaited India entry. VinFast , a small and unprofitable EV maker, briefly became the world's third most valuable automaker in 2023, behind Tesla and Toyota, after its Nasdaq debut sent shares soaring nearly 700%. Now, the company plans to open a car assembly plant in the world's third-largest car market by the end of June. Formed in 2017, VinFast began making EVs in 2021. It is backed by Vingroup, Vietnam's largest conglomerate. VinFast in January last year signed an agreement with Tamil Nadu to invest as much as $2 billion in the country. Work on the plant started soon after, with an initial investment of $500 million. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Linda Kozlowski, 67, Shows Off Her Perfect Figure In A New Photo Investructor Undo ALSO READ: Tesla not interested in manufacturing in India, minister says The introduction of its VF7 and VF6 models, expected before the upcoming festival season, will mark the official desi debut of the company. Live Events The loss-making startup had initially planned to focus on America for its foreign sales, but slow progress in the United States, even before growing uncertainty caused by U.S. tariffs, pushed the company to change strategy. VinFast's entry in itself may not be a significant challenge for Tesla in India, but it points at a crowded EV space, which might make it hard for Tesla to cruise into the Indian market, which is now 'not interested' in making in India. ALSO READ: Is Tesla-killer BYD chasing Elon Musk to India? The statement comes after Europe's Mercedes Benz, and Skoda-Volkswagen (VW), South Korean Hyundai, and Kia, have shown interest in manufacturing EVs in India. Musk is late to the India party Heavy Industries Minister Kumara Swamy today said that Elon Musk's Tesla is not interested in manufacturing in India. Former US President Donald Trump had earlier stated that it would be 'very unfair' if Musk were to set up a factory in India. Moreover, Musk's company may have lost much of its sheen, novelty and competitive edge. VinFast is not the only challenge Tesla will face in India. VinFast has joined a host of local and Asian EV makers in India which have crowded the EV space. Tesla's reluctance to enter India — it had registered a local unit more than four years ago — has given competitors a head start in the country's nascent but rapidly expanding EV market. If all the carmakers are going to converge in India and participate, Tesla should have 'a little bit of FOMO in coming days,' Amit Bhatt, India managing director at the International Council for Clean Transportation told Bloomberg in January. Competition in the Indian market VinFast is set to enter the Indian market at a time when both local and global players are already establishing their presence, yet significant opportunities remain in this rapidly growing sector. The central government aims to boost electric vehicle (EV) sales from just 2.5% of the total 4.3 million car sales in 2024 to 30% by 2030, highlighting the market's vast potential. Capitalizing on this opportunity, major players like Suzuki Motor Corporation's India unit, MG Motors, Hyundai, and BYD are aggressively expanding their footprint in India's nascent EV market. VinFast Asia CEO Pham Sanh Chau has stated that the company does not see Tesla—or even BYD—as direct competitors. However, the Indian market poses its own unique challenges. BYD, a global rival to Tesla, currently sells imported EVs in India and is reportedly considering setting up a local manufacturing facility, with media reports indicating a potential plant in Telangana. Meanwhile, Tesla's prolonged hesitation in entering India may have cost it a crucial first-mover advantage in one of the world's fastest-growing auto markets. Domestic powerhouse Maruti Suzuki is also gearing up to enter the EV segment. As India's largest carmaker by volume, Maruti Suzuki has a proven ability to capture substantial market share—even as a late entrant—demonstrated by its past successes with diesel vehicles and compact SUVs. For VinFast, the challenge extends beyond international competitors like Tesla and BYD. It must also navigate a complex domestic landscape shaped by established Indian incumbents, pricing sensitivities, and evolving consumer preferences.
Hindustan Times
a day ago
- Automotive
- Hindustan Times
Auto recap, June 1: VinFast India plan revealed, Range Rover SV Masara launched, May sales of Tata-Toyota-Kia & more…
Here is your quick check on the biggest developments in the world of automobiles. Here is your quick check on the biggest developments in the world of automobiles. Check Offers The automotive industry is rapidly changing, presenting difficulties in staying abreast of all the latest advancements. At HT Auto, we are dedicated to delivering the most relevant and current information as it becomes available. Below is a concise overview of the key highlights from Sunday, June 1. VinFast confirms launch plans for India with VF7 & VF6. Bookings open this month Vietnamese carmaker VinFast announced its foray into the Indian market a while back and even showcased its entire range at the 2025 Bharat Mobility Global Expo in January. The automaker has now confirmed its launch plans for India, which will kick off later this year with the launch of its maiden offerings, the VF7 and VF6. Both electric SUVs have been designed and developed in Vietnam, but will be adapted for Indian conditions. The automaker has also confirmed that bookings for both offerings will begin in June this year. Also Read : VinFast confirms launch plans for India with VF7 & VF6. Bookings open this month Range Rover SV Masara Edition launched in India at ₹ 4.99 crore. Restricted to only 12 units Bringing its second India-exclusive special edition to the market, JLR has launched the new Range Rover SV Masara Edition, priced at ₹ 4.99 crore (ex-showroom). The new Range Rover SV Masara Edition is developed for India by Land Rover's Special Vehicle Operations (SVO) division and takes inspiration from the rare blue sapphire found in the Himalayas. This is the brand's second India-exclusive edition after the Range Rover SV Ranthambore Edition launched last year, and much like the former, the new Masara Edition will be restricted to just 12 units. Also Read : Range Rover SV Masara Edition launched in India at ₹ 4.99 crore. Restricted to only 12 units) Punch, Nexon, Safari, and Harrier SUVs couldn't save Tata sales from slumping; EVs record a marginal uptick Tata Motors on Sunday reported that it registered a double-digit slump in the domestic passenger vehicle sales in May 2025. The homegrown auto giant that sells popular models such as Punch, Nexon, Safari, Harrier, and Curvv SUVs in the Indian passenger vehicle market, has registered 41,557 units last month, as compared to 46,697 units sold in the same month a year ago. This marked an 11 per cent year-on-year growth for the automaker in May this year. Besides the abovementioned SUVs, Tata Motors also sells Tiago, Tigor and Altroz in the Indian market. Also Read : Punch, Nexon, Safari, and Harrier SUVs couldn't save Tata sales from slumping; EVs record a marginal uptick Innova and Fortuner fuel Toyota to grow 22 per cent in May 2025 Toyota Kirloskar Motor (TKM) has posted a year-on-year growth of 22 per cent in May 2025. The company sold 30,864 units during the month, including 29,280 units in domestic sales and 1,584 units exported. In May 2024, TKM had sold 25,273 units. The company also recorded 27 per cent growth in the first two months of FY 2025–26, selling 58,188 units, compared to 45,767 units in FY 2024–25. Also Read : Innova and Fortuner fuel Toyota to grow 22 per cent in May 2025. Check details Kia Carens Clavis fuels strong May sales, EV variant expected to launch soon The Korean carmaker, Kia India, has reported a year-on-year growth of 14.43 per cent in May 2025, with total sales of 22,315 vehicles as compared to 19,500 units sold in May 2024. The company noted that the recently launched Kia Carens Clavis has received an overwhelming response. The MPV was launched at a starting price of ₹ 11.49 lakh, ex-showroom. Also Read : Kia Carens Clavis fuels strong May sales, EV variant expected to launch soon Qubo Dashcam Pro 3K (Starvis 2) review: A digital partner you can rely on roads Keeping pace with the increasing consumer demand, dashcam qualities have been increasing rapidly to more advanced technologies. Instead of just capturing the video footage, many dashcams now come equipped with ADAS features as well. Also, the quality of the dashcam's footage is improving as well. Recently, we got our hands on the Qubo Dashcam Pro 3K (Starvis 2) and here is the review of it. Also Read : Qubo Dashcam Pro 3K (Starvis 2) review: A digital partner you can rely on roads Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 02 Jun 2025, 07:40 AM IST
