Tesla's Vietnamese Rival Is Planning To Set Up A Manufacturing Hub In India: Report

This story was first published on the Benzinga India portal.

VinFast Auto VFS, Vietnam's rising electric vehicle (EV) manufacturer often pitted against Tesla Inc. TSLA, is reportedly contemplating India as the location for its next production center, which could mark a significant foray into the Indian market.

The automaker, which recently ascended to the rank of the world's third-most valuable carmaker, is reportedly in preliminary talks to establish a plant in either Gujarat or Tamil Nadu, as reported by the Economic Times.

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Though these discussions are still in their infancy, VinFast is reportedly eager to make a substantial investment in India. However, it is unclear at this point whether the focus will be on serving the domestic market or exports. Should these plans come to fruition, VinFast would gain the distinction of being the first Vietnamese automaker to venture into the Indian market.

VinFast, the brainchild of Vietnam's richest man, Pham Nhat Vuong, has been causing a stir in the automotive industry. The company stunned many by achieving a remarkable valuation of $85 billion on its Nasdaq debut, surpassing legacy automaker Ford. The firm has seen a revenue boost, primarily driven by strong domestic deliveries, and is steadily reducing its net losses.

Having already sold 18,700 EVs predominantly in its home market, VinFast has commenced deliveries to the U.S. and plans to extend its reach to Europe in the coming quarter. This potential move into India is indicative of VinFast's ambitious global expansion strategy and highlights the increasing allure of the Indian market for international EV manufacturers.

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