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NEW DELHI, 2 October 2023: VinFast, the dynamic electric vehicle (EV) manufacturer from Vietnam, is making waves in the automotive industry and is now eyeing a manufacturing unit in India. This move aligns with the company’s ambitious expansion plans and underscores its growing interest in the thriving Indian EV market.
Expanding to India
VinFast is reportedly exploring the possibility of establishing its manufacturing facility in either Tamil Nadu or Gujarat, two prominent Indian states. While discussions are in preliminary stages, the company’s interest in India is substantial. With a reported market capitalization of USD 25.7bn, the company is keen on making significant investments in India’s EV sector.
Potential for Export and Local Market
It’s yet to be confirmed whether VinFast plans to export its vehicles or exclusively serve the Indian market. The company has engaged in discussions with multiple state governments, leading to the shortlisting of Tamil Nadu and Gujarat as potential locations for its manufacturing facility.
VinFast’s Remarkable Rise
Founded in 2017, VinFast has achieved remarkable milestones in a relatively short time. In a groundbreaking achievement, it became the world’s third-largest automaker by market capitalization last month, following giants like Tesla and Toyota. After its Nasdaq listing, VinFast’s market valuation skyrocketed to an impressive USD 191bn, marking a nearly 700 percent surge. This highlights the company’s rapid growth and immense potential in the global automotive market.
Market Capitalization Dynamics
Despite its initial surge in market capitalization, VinFast’s shares experienced significant volatility. After reaching a peak, the stock saw a substantial decline, resulting in a reduction of over USD 140bn in market capitalization. As of the latest available data from Nasdaq, company’s current market capitalization stands at USD 25.7bn.
A Prominent Automaker
With a market capitalization of USD 25.7bn, VinFast holds the position of the world’s 17th most valuable automaker, according to certain estimates. This is a testament to the company’s impact on the global automotive industry.
Future Plans and Indian Entry
During its second-quarter earnings announcement on September 24, VinFast unveiled its plans for the next phase of development starting in 2024. One of its key strategies in this phase involves expanding its dealership networks into new market clusters, with a specific focus on entering the Indian market.
Conclusion
VinFast’s consideration of establishing an EV manufacturing unit in India reflects its dynamic growth and increasing global presence. As a significant player in the EV sector, the company’s potential entry into India holds promise for both the Indian automotive industry and EV enthusiasts. With its impressive market capitalization and commitment to innovation, it is poised to contribute significantly to the evolution of electric mobility in India and beyond.
