VinFast In an attempt to diversify their supply chains, multinational businesses are increasingly moving their production to India. Rising geopolitical tensions, trade barriers, and cost constraints are the main causes of this shift, which is making China less desirable as the only manufacturing hub.
According to VinFast’s Asia CEO, the Vietnamese electric car manufacturer is now in negotiations with a number of component manufacturers in an effort to increase its production footprint in India.
During the inauguration of VinFast’s manufacturing facility in India, VinFast Asia CEO Pham Sanh Chau shared with Reuters that the company is actively engaging in discussions with several of its existing component suppliers in the southern city of Thoothukudi. A few of them are thinking about moving a portion of their business to an industrial park in India.
Although he did not reveal the identities of the businesses considering this option, Chau continued, “We’ve even received a request from a Vietnamese supplier who wants to move their plastic production for our cars to India.”
By the end of this month, VinFast intends to introduce cars to Indian showrooms. The precise cost and date of debut have not yet been disclosed.
VinFast and the Tamil Nadu government inked a deal last year for an investment of up to $2 billion, with a $500 million initial commitment over the first five years. The facility is expected to have an annual production capacity of up to 150,000 vehicles.
Chau added that orders from Sri Lanka, Nepal, and Mauritius had already been placed at the Indian site, establishing the plant as a possible export-focused production base. He did stress, though, that the company’s top priority right now is still satisfying Indian local demand.
By 2025, VinFast wants to have delivered 200,000 cars worldwide. The company sold almost 72,100 units in the first half of this year alone, mostly in Vietnam, which is its native market.
Editing by Sonia Cheema and Jamie Freed; reporting by Chandini Monnappa in Bengaluru and Praveen Paramasivam in Thoothukudi.