Tesla’s rival Vietnamese EV maker VinFast plans billion dollars investment in India: Report

Vietnam-based electric vehicle maker VinFast Auto, which is deemed as Tesla's rival is planning to set up a manufacturing unit in India, according to a report by the Economic Times. VinFast Auto emerged as the world's third-most valuable carmaker last month.

As per the report, the Vietnamese EV maker could set up a plant either in Gujarat or Tamil Nadu.

At present the talks are at the preliminary stage but VinFast Auto is keen to enter India, the report said citing sources. However, there is no clarity whether VinFast is looking at exports or whether the new production unit would only serve the Indian market.

(Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

If VinFast Auto goes ahead with its investment plan then it would be the first-ever Vietnamese automaker to set up its market in India.

Last month, VinFast Auto became the world's third-largest automaker by market capitalisation behind Tesla and Toyota.

VinFast's revenue more than doubled in the second quarter on higher deliveries to domestic customers, in its first results since its market debut in August.

VinFast garnered a valuation of about $85 billion – higher than that of legacy US automaker Ford – on its Nasdaq debut.

VinFast's second-quarter revenue rose 131.2% to $327 million. Its net loss in the quarter was $526.7 million, narrowing 8.2% from the same period last year.

As of June 30, VinFast, backed by Vietnam’s richest man, Pham Nhat Vuong, had sold a cumulative 18,700 electric vehicles, mostly in Vietnam, according to an 18 September filing. It sold 7,100 vehicles to GSM Green and Smart Mobility Joint Stock Co., a Vietnamese taxi company in which Vuong holds a 95% stake.

VinFast plans to deliver its first EVs to Europe in the fourth quarter, according to Bloomberg news agency. It delivered its first vehicles to the US earlier this year.