Vietnamese electric vehicle maker VinFast (0TL.F), opens new tab will enter the Indian market with two premium electric SUVs, taking on homegrown rival Mahindra & Mahindra and China's BYD, which already has a presence in the world's third-largest car market.
VinFast unveiled its VF6 and VF7 SUVs at the India Auto Show in New Delhi, as it hopes to draw buyers to its EVs and contribute to India's goals of eliminating carbon emissions on a net basis, said Pham Sanh Chau, VinFast's Asia CEO.
"We are turning our focus to India - our next growth frontier," Chau told reporters.
Nasdaq-listed VinFast counts North America and Vietnam as its primary markets but is trying to expand aggressively elsewhere. But the automaker has been reporting deepening losses as EV demand softens.
Electric models accounted for about 2.5% of the more than 4 million vehicles sold in India last year. The government, targeting 30% by 2030, is working on a programme to attract EV makers.
VinFast said last year it would invest $500 million in India over five years to build a car and battery factory, now under construction in the southern state of Tamil Nadu, and launch new car models.
The factory will have an initial capacity of 50,000 cars a year and can be scaled up to 250,000 based on demand, Chau said, adding the company is appointing dealers in India and studying investments in setting up charging infrastructure.
Like Tesla (TSLA.O), opens new tab, VinFast has sought a reduction from the Indian government on the 100% import tax on fully built EVs to allow it to launch cars while its factory comes online. The move has been opposed by domestic automakers.
Japanese automaker Nissan's (7201.T), opens new tab factory in Sunderland, UK is set to receive a supply of up to 340,000 electric vehicle (EV) powertrains annually from JATCO Ltd's new factory nearby, the latter said on Thursday.
The plant is scheduled to be completed in 2026, the automatic transmission manufacturer added, and is supported by a grant from the British government, which has set tough EV mandates for the UK auto industry.
Nissan, like other global legacy carmakers, has been grappling with competition from Chinese EV makers. The company is in the midst of talks to merge with another Japanese auto major Honda (7267.T), opens new tab by 2026 and has planned cuts to jobs and global manufacturing capacities to reduce costs.
The company said in 2023 it would invest $1.4 billion in its Sunderland plant to build electric versions of two car models.
"Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain," said Alan Johnson, senior vice president, manufacturing, supply chain and purchasing for Nissan Africa, Middle East, India, Europe and Oceania.The 138,840 square feet facility with a 48.7-million-pound ($59.5 million) investment will create up to 183 jobs in the port city of Sunderland, said JATCO, which also has overseas production plants in Mexico, China and Thailand.
