Chief Minister MK Stalin has laid the foundation stone for the construction of Vietnamese EV manufacturer VinFast Auto's facility for vehicles and batteries in Tamil Nadu, marking a significant investment of Rs 16,000 crore. The company is a notable competitor to Elon Musk-led Tesla, which also plans to establish its presence in India following discussions to reduce import duties.
VinFast EV manufacturing facility: DetailsVinFast India's manufacturing facility, situated in Thoothukudi, Tamil Nadu, spans 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial area. This venture is anticipated to generate 3,000 to 3,500 employment opportunities in the region. At this plant, the company intends to manufacture over 1.5 lakh vehicles annually.
Additionally, VinFast intends to develop a nationwide dealership network to enhance its brand presence and engage with customers effectively. The company aims to contribute to India's electric vehicle market, which the government aims to expand significantly by 2030.
VinFast: Seeking import duties like TeslaCurrently, India imposes a 100 percent import duty on cars priced above USD 40,000 (approximately Rs 33 lakh), encompassing the cost, insurance, and freight. For vehicles priced below this threshold, the import duty stands at 60 percent.
Similar to its global rival Tesla, VinFast has advocated for a reduction in India's 100 percent import duty on fully-built EVs. However, this proposal made to the PM Narendra Modi-led central govt has faced opposition from domestic automakers. While India, the world's third-largest vehicle market, has been reviewing these requests, no decision has been reached yet, as per a government official's statement last month, Reuters reported.
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