VinFast Willing To Collaborate With Charging Partners In India: Le Thi Thu Thuy

India has witnessed a significant growth in the electric mobility sector over the past few years with many top automobile brands launching their products and several new businesses coming to life in this ever evolving sector. The country is set to become one of the world’s major EV markets by 2030 which is anticipated to expand at an average annual rate of 49 per cent till 2030, propelled by favourable government efforts and policies, rising air quality concerns, and rising fuel prices.

India is on track to become the largest EV market by 2030, with a total investment opportunity of more than USD 200 billion over the next 8-10 years. Meanwhile when indigenous products are available in the market and government has been coming up with more incentivised schemes for the smooth adoption of electric vehicles, companies like Tesla which has been trying to enter the market has not gain much success on the plans. However, VinFast, a Vietnam-based electric vehicle manufacturer which claims to be the rival of Tesla, has chalked out plans to enter the country with strong product range and variety for Indian public and has been in talks with government and charging partners for making this entry smooth and hassle free.

Opportunity India talks to Le Thi Thu Thuy, Global CEO of VinFast, about company's strategy, plans and product portfolio which it is planning to offer to general public of India on affordable price. The company said that it aims to bring the most affordable electric vehicles from mini cars to full size SUVs in the Indian market. Following are the excerpt from the conversation:

What specific market research and analysis has VinFast conducted to understand the current state of the Indian EV industry and the potential for growth?

Thuy: We have collaborated with global market research entities and discussed with partners in India to understand the market demand, consumer trends, policy frameworks, and regulations for EVs in India in order to formulate a suitable business strategy.

India is the third-largest automotive market in the world, with a relatively low EV adoption rate, standing at only around 1 per cent. The Indian government is also introducing various policies to encourage EV production, usage, and infrastructure development. Evidently, the market holds immense potential, and this is the right time for VinFast to enter the market and seize the opportunity.

How does VinFast plan to address the unique challenges and opportunities in the Indian market, such as diverse consumer preferences and infrastructure limitations?

Thuy: VinFast is the only manufacturer in the world that provides a complete range of EVs, from mini cars to full size SUVs. Our product range ensures that every customer can find an EV model that suits their needs and financial capabilities.

We are actively researching and seeking opportunities to collaborate with charging partners in markets we operate to develop charging infrastructure and connect charging systems, offering convenience to our customers during their ownership of VinFast EVs. We are willing to collaborate with the government and charging partners in India to develop charging infrastructure here.

Can you provide insights into VinFast's manufacturing and assembly plans in India? Are there any collaborations or partnerships with local companies in the pipeline?

Thuy: We are planning to build a Completely Knocked Down (CKD) factory in India with production capacity of 50,000 vehicles per year. The expected initial investment for Phase one is between USD 150 million to USD 200 million. Production is expected to commence in 2026.

At this stage, we are actively engaging in discussions with the Indian government and seeking potential partners to initiate the construction of the factory.

Government incentives and policies play a crucial role in promoting EV adoption. How does VinFast plan to navigate the regulatory landscape and leverage incentives in India?

Thuy: India is setting ambitious goals for the development of EVs, with plans to expand infrastructure and offer incentives to boost consumer adoption and attract manufacturers. We are still in the process of market research and discussing with the Indian government regarding specific plans. We believe that VinFast will have the opportunity to access government incentives and contribute to fostering India's green mobility industry.

Indian consumers often prioritize range and charging time. How does VinFast plan to address these concerns with its EV models?

Thuy: Recently, VinFast officially acquired VinES, Vingroup’s battery and energy solution company. The acquisition of VinES with its battery technology and modern manufacturing facilities is an important milestone for VinFast in achieving the full integration of its manufacturing capabilities, developing optimal battery technology, increasing EV efficiency, and enhancing VinFast's competitiveness in the market.

We are also continuously researching ways to improve vehicle quality, including technology features through software updates to enhance charging times. Our vehicles have received positive feedback from customers regarding charging speed and driving range after software updates, such as the VF e34 model, which increased its range per full charge from 285km to 318.6km after a software update in early 2023.

Can you share insights into VinFast's product lineup for the Indian market, including any models specifically tailored to local preferences?

Thuy: Initially, we will be distributing the VF e34, VF 5 and VF 3 models. These are compact cars tailored for city commuting. The VF 3 falls under the small car segment (mini car) with an overall length of approximately 3,114 mm, featuring a design of 2 side doors, 1 rear trunk, and interior space accommodating up to five passengers.

The VF e34 is an electric car categorized in segment C, with a wheelbase length of 2,611mm and overall dimensions of 4,300 x 1,793 x 1,613 (mm). The VF e34 is equipped with an electric motor with a maximum capacity of 110 kW, a maximum torque of 242 Nm, front-wheel drive, MacPherson front suspension, and torsion bar rear suspension. The car uses a 42kWh battery pack, allowing for a range of 300km on a full charge.

The VF 5 is an A-segment electric SUV, compact in appearance with dimensions of 3,965 x 1,720 x 1,580 mm. The VF 5 battery has an available capacity of 37.23 kWh, enabling the car to travel over 300 km on a full charge according to NEDC standards. Equipped with an electric motor delivering a maximum power of 100kW equivalent to 134 Hp and a maximum torque of 135Nm, the VF 5 Plus offers impressive performance.

What marketing and branding strategies does VinFast intend to employ to establish a strong presence and brand recognition in the Indian EV market?

Thuy: VinFast applies a direct marketing strategy, “Seeing is believing” by participating in major automotive events, organising tours experiencing Vingroup’s ecosystem and VinFast factory in Vietnam, organising product introduction programmes and test drives... bringing consumers opportunities to experience VinFast products, gain a better understanding, and trust in the brand.

In the Indian market, we will continue to study market demands, consumer preferences and habits to develop a suitable marketing strategy.

Environmental sustainability is a growing concern. What are VinFast’s plans for eco-friendly manufacturing and recycling practices in India?

Thuy: At VinFast, we consider an efficient business as one capable of creating sustainable values, ensuring continuous development for the future. We put sustainability at the core of the company's activities.

In production and business, VinFast adheres to all standards to minimize environmental impact to the greatest extent possible. We proactively research and implement solutions to reduce carbon emissions and promote the efficient use of energy. We also collaborate with leading global partners to develop solutions for battery recycling, material reuse, and more.

VinFast will apply similar sustainability standards in the markets where we operate, while thoroughly studying each country's environmental regulations for appropriate adjustments.

After-sales service and maintenance are crucial for customer satisfaction. What are VinFast's plans for providing reliable support to Indian EV owners?

Thuy: VinFast is committed to delivering unique benefits to Indian customers through three core values: High-quality Products, Inclusive pricing, and Outstanding after-sales.

We implement one of the best warranty policies in the market, offering 7-10 years for the vehicles and 10 years for the batteries. VinFast also offers flexible sales and outstanding after-sales policies, catering to the needs of various customer groups and providing a worry-free experience throughout the EV usage journey.

The resale value of EVs is a concern for potential buyers. What initiatives does VinFast have in place to address this issue?

Thuy: There are several critical factors that affect the resale value of EVs, including the vehicle's quality, brand reputation, battery lifespan, and the vehicle's technology updating capabilities.

VinFast's vehicles and batteries have the best warranty on the market, showcasing our confidence in our product quality. We consistently stand behind our products to ensure maximum benefits for our customer

We continually research and develop new, highly efficient, safe, and environmentally friendly battery technologies with rapid charging capabilities, recyclability, weight optimization, cost-effectiveness, and longevity. Mastering battery technology will make VinFast vehicles’s pricing more competitive and increase their resale value.

Moreover, we regularly update software (OTA), ensuring VinFast EVs are always equipped with the latest technology, maintaining the vehicles' value as if they were brand new.

How does VinFast plan to contribute to the growth of the Indian EV ecosystem, including battery recycling and skill development for the workforce?

Thuy: We will contribute a diverse product range to the EV ecosystem in India, providing more choices for consumers.

We will also collaborate with the government, local authorities, and partners in India to explore opportunities for participation and investment in developing the EV service infrastructure and recycling, contributing to sustainability goals in the country.

Additionally, we will have plans for recruiting and training talents in India to help develop a highly skilled workforce for the EV and technology industry, as well as create good jobs for the local community

In the long term, what are VinFast's goals and visions for the Indian EV industry, and how do these align with the broader sustainability and mobility objectives of the country?

Thuy: VinFast's vision is to become a global smart EV manufacturer, accelerating the EV revolution with the goal of fostering a greener future for all. This vision guides our operations in all markets, and we believe that VinFast aligns with the sustainable goals of every country, including India. We believe that with the support of the Indian government and its people, we can play a significant role in accelerating India's green transition.