VinFast to Establish Car Assembly Plants in India and Indonesia in 2023

VinFast is opening car assembly plants in India by June and in Indonesia by October 2023. This shift marks a change in strategy from focusing on the U.S. market to prioritizing sales in Indonesia, India, and the Philippines. The Indian facility will have a production capacity of 150,000 vehicles.

VinFast, the Vietnamese electric vehicle manufacturer, is set to establish car assembly plants in India and Indonesia this year. The Indian facility is expected to commence operations by the end of June, while the Indonesian plant is slated to open in October. This strategic shift reflects the company’s pivot towards Asian markets, as stated by its chief, Pham Nhat Vuong.

Previously, VinFast had concentrated its efforts on the American market for international sales. Nevertheless, slow advancement in the U.S., exacerbated by uncertainties around tariffs, prompted the company to alter its focus. Vuong emphasized the need to prioritize markets in Indonesia, India, and the Philippines, stating, “In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines markets.”

Currently, VinFast does not intend to increase sales in more developed markets such as the United States, Canada, and the European Union due to elevated logistics costs. Last year, VinFast collaborated with Tamil Nadu state, agreeing to invest up to $2 billion in the Indian market, with an initial commitment of $500 million over five years. The new facility aims for an impressive annual production capacity of 150,000 vehicles.

In addition, VinFast commenced construction on an assembly factory in Indonesia last July, with operations now confirmed to begin in October, aligning with previous announcements by the company.

VinFast is strategically shifting its focus from North America to Asian markets, with plans for assembly plants in India and Indonesia. By prioritizing these regions, the company aims to boost production capacity and sales. This move comes in response to challenges faced in the U.S. market, and reflects a calculated approach to capitalize on growing opportunities in Asia’s electric vehicle segment.

Original Source: www.tradingview.com