WILL VINFAST'S $2 BILLION BET ON INDIA PAY OFF?

The vehicle maker's sales are largely concentrated in Vietnam, and it remains untested in the international market

- Ayaan Kartik

File photo of a worker at VinFast Auto's factory in Thoothukudi, Tamil Nadu. The EV maker sees its new India factory as key to entering South Asia, the Middle East and Africa.

(BLOOMBERG)

The national capital recently witnessed two launches within weeks of each other.

On Il August, Elon Musk’s Tesla had a lowkey launch for its second showroom in India, in Delhi's Aerocity. The global brand had only one model on display with a small crowd in attendance.

On 6 September, a stone’s throw away from Tesla’s showroom, VinFast Auto Ltd, alittle-known Vietnamese brand, made a much bigger splash. Ina large ballroom that could easily hold more than 100 people, the company’s leadership officially launched two new sports utility vehicles, VF6 and VF7.

Former diplomat Pham Sanh Chau, who served as Vietnam's ambassador to India between October 2018 and September 2022, isnow the chief executive overseeing South Asia for the company. He sees India being a major driver for the company’s growth.

What really caught the crowe’s attention and industry observers at large, was the price range of the two premium models. Chau revealed that it would fall between ₹16 lakh and ₹25 lakh, with multiple variants being offered in the range at which carmakers Hyundai India, Tata Motors and Mahindra and Mahindra sell their EVs.

“This will be bad news for Tata and Mahindra,” one of the dealers attending the launch remarked.

Aside from the usual crowd of influencers, media and dealers, the company had also invited the logistics heads of some public sector undertakings (PSUs) for the launch. “They probably want to explore commercial partnerships early on. Government bodies buy and lease a significant number of vehicles every year,” said one PSU official. “They have done their homework.”