2 days Ago By Sagar Parikh
A new report from says that VinFast, the automotive division of Vietnamese conglomerate Vingroup, will locally assemble electric cars in India. Officially, the company has said it could initially import Completely Built Units (CBUs). The Indian government levies a steep tariff rate of 70% or 100% on CBUs, depending on the cost, insurance, and freight (CIF) value.
The report says it plans to source Completely Knocked Down (CKD) kits and assemble them in the country. This alternative route slashes the tariff rate to 15%. In addition to saving significantly on tariff rate and thus pricing the models much more competitively, VinFast will show its commitment to India and its local partners better by locally assembling cars.
The company expects to start operations at its local plant three months before schedule. The report says that VinFast will likely launch EVs with 300-500 km of range in the ₹2.5-3.
0 million (approx. €28,000-33,000) range. Such pricing could make them very expensive for the average Indian, which typically shops in price segments below ₹2.
0 million (approx. €22,000). According to local newspaper , the average selling price of passenger vehicles in the country is just ₹1.
15 million (approx. €13,000). Thus, VinFast may fully manufacture the later models in India instead of assembling them from imported CKD kits, and price them significantly lower.
VinFast is building a factory almost at the tip of India in Thoothukudi (Tamil Nadu), which will give it ea.
