HANOI, Vietnam — Vietnamese automaker VinFast says it plans to spend as much as $2 billion to construct an electrical car manufacturing facility in India, the world’s third-largest auto market by gross sales.
The manufacturing facility in southern India’s Tamil Nadu state would be the firm’s first foray into India and follows VinFast’s launch of gross sales in the US and different main markets.
The plan highlights the corporate’s dedication to a “imaginative and prescient of a zero-emission transportation future,” Tran Mai Hoa, the corporate’s deputy CEO of gross sales and advertising, stated in a press release.
VinFast stated it’s committing $500 million within the first section of development and plans to remodel the area round port metropolis of Thootukudi right into a “first-class electrical car manufacturing hub.” The manufacturing facility can have a capability to roll out 150,000 automobiles yearly, it stated. It gave few different particulars.
VinFast is a part of Vingroup, a sprawling conglomerate that started as an immediate noodle firm in Ukraine within the Nineteen Nineties that was based and is run by Vietnam‘s richest man, Pham Nhat Vuong.
This will likely be VinFast’s first foray into India and is a part of a world growth that has included exports of EVs to the US. It’s constructing a $4 billion EV manufacturing facility in North Carolina, the place manufacturing is slated to start this 12 months.
The corporate goals to be promoting in 50 markets worldwide by the top of this 12 months. In October, it stated it plans to construct a $400 million electrical car manufacturing facility in Indonesia. It has began transport EVs made in Vietnam to neighboring Laos to function a fleet for Inexperienced SM, an EV taxi operator that’s largely owned by VinFast’s founder.
Final 12 months, Vinfast listed its shares on Nasdaq, seeing them balloon in worth with its market worth capturing briefly above these of General Motors Corp. and Ford Motor Co. in late August. However investor enthusiasm has cooled down and the corporate misplaced greater than $1.4 billion within the first three quarters of 2023.
Whereas it has struggled to promote its EVs within the U.S. and its early automobiles have obtained dangerous evaluations, the corporate maintains that if it will probably succeed within the crowded and aggressive American market, it will probably succeed anyplace.
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