Vietnam’s Vinfast Auto recently issued a statement related to India’s latest EV policy, hinting at its intention to launch operations in the country with imported, premium electric SUVs at “inclusive prices.” Vinfast Auto had earlier committed to the Indian market by starting work on a new vehicle production facility in the state of Tamil Nadu.
Giving details about the new policy, Vinfast said in a statement, “We attach great importance to the new EV scheme of the Government of India as it aims to promote large investments in manufacturing, enhance competencies and skills, establish a strong supply chain. and provide world-class offerings to consumers.” Zero tailpipe emission vehicles. With a long-term growth commitment in India, we have committed to spend $500 million, which also includes an electric vehicle manufacturing facility in Tamil Nadu. This forward-looking policy will help us offer a variety of smart, green, premium-quality SUVs at inclusive prices along with excellent after-sales policies.
It is noteworthy here that in early 2024, Vinfast signed an MoU with the Government of Tamil Nadu, making an initial investment of $500 million (approximately Rs 4,160 crore) for the first five years.
Under the new EV policy, the government will reduce import duty for imported electric vehicles with cost, insurance and freight (CIF) value of $35,000 (Rs 29 lakh) and above from 100 per cent to only 15 per cent, provided their respective manufacturers commit . To invest a minimum of $500 million (approximately Rs 4,150 crore) to set up local manufacturing within three years.
Additionally, during this period, the government will allow the import of a maximum of 40,000 EVs at lower import duties, equivalent to approximately 8,000 EVs per year.
This new policy is also expected to pave the way for Tesla’s entry into India. Tesla lovers in the country are eagerly waiting for Elon Musk’s first reaction after the government approved the new electric vehicle (EV) policy, which has been proposed to attract investment in the EV sector by global manufacturers like the Musk-run electric car company. Is designed.
