With the launch of the plant, VinFast moves closer to its target sales target of two lakh vehicles
VinFast is still in discussion with the Central government on getting incentives for new car manufacturers and is hopeful that it will get some sops, Pham Sanh Chau, CEO, VinFast Asia, told mediapersons on Monday.
“We had a very long discussion with the Centre, and we are patient,” he said. “We missed out on getting the incentive because of some due dates. We still expect the government to announce some kind of an incentive for us,” he added.
The $2-billion (₹16,000 crore) investment by Vietnam-based electric vehicle manufacturer VinFast in Tamil Nadu did not qualify for availing benefits under the scheme to Promote Manufacturing of Electric Passenger Cars in India. The EV plant in Tamil Nadu became ineligible for India’s EV incentive scheme, as investment was capitalised before approval date.
The guidelines under the scheme to Promote Manufacturing of Electric Passenger Cars in India were announced in June, whereby approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4Ws with a minimum CIF value of $35,000 at reduced customs duty of 15 per cent for a period of five years from the Application Approval Date.
Discussions on
“We already have a factory, so we don’t need a CBU, they say. However, still, if you want to include a different variant, we want to show the investment from the date of application. That means whatever investment we did, it’s not applicable. This is a challenge in the application and we are discussing this. We will get a better revision on the policy soon,” said a senior official.
With the launch of the plant, VinFast moves closer to its target sales target of two lakh vehicles and its long-term production goal of one million vehicles per year by 2030.
Chau said that at this stage, they assemble completely knocked down (CKD) units, as they need to test the market and look at setting up after-sale networks and local partners. “However, at the end of the day, if we want to bring down the cost, we need to shift to a full-fledged manufacturing facility with local support,” he said without giving a time-frame on local sourcing.
VinFast officially opened pre-bookings for its premium electric SUVs, the VF6 and VF7 on July 15. Customers can now book their preferred VinFast premium electric SUV either at the exclusive showrooms or through the official website, VinFastAuto.in, with a fully refundable booking amount of ₹21,000.
This writer was in Thoothukudi at the company’s invitation
Published on August 4, 2025
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