VinFast in search for a partner to go biking in India

Mumbai: Vietnamese electric vehicle maker VinFast is exploring various options for entering the Indian market for high-speed electric two-wheelers, said Pham Sanh Chau, the company’s chief executive.Towards this, VinFast may consider a technical alliance or contract manufacturing partnership with an Indian two-wheeler maker, he said.

“We have already started discussions with a number of manufacturers on various models of cooperation because our objective is finally to achieve maximum localisation,” said Chau. “I understand that India is the number one two-wheeler market. You can see our fleet of six models. We are very successful in Vietnam.”

Vinfast, part of Vietnamese conglomerate Vingroup, made its debut at the New Delhi auto show which concluded Wednesday by showcasing its range of electric cars and two-wheelers.
The company is slated to start selling two e-SUV models-VF 6 and VF 7-from the second half of the year which will be assembled at its upcoming facility in Tamil Nadu.

The India entry marks a key step in the automaker’s global ambitions, showcasing its intent to be part of the rapidly growing EV sector in the country.

To be sure, the manufacturer of Evo, Klara, Feliz and Vento e-scooters is looking to enter India’s electric two-wheeler market at a time when competition in the segment has intensified.

The segment led by Ola Electric is set to see intensified action with the entry of a new set of legacy two-wheeler companies including scooter market leader Honda Motorcycle and Scooter India, Suzuki Motorcycle India on the one hand and ramping up of volumes by the incumbents on the other. Sales of high-speed e-two wheelers rose by more than a third to 1,148,529 units in calendar 2024, according to the Federation of Automobile Dealers Associations.

VinFast’s facility in Tamil Nadu, which will be able to produce up to 50,000 e-cars per year, has enough space for setting up a two-wheeler assembly line, Chau said. However, for the time being, the automaker is “also exploring the possibility of working with other local manufacturers in order to produce two wheelers,” he added.

Currently, the Hai Phong-based EV maker has kept all options open, he said. This includes using the under-utilised capacity of Vinfast in other markets, setting up a new assembly line in the Indian facility or forge a technical alliance with one of the existing two-wheeler companies in India, said Chau.

“We are working on all fronts, whichever suits us best in terms of providing the quality product to the customer at the right price, we will move ahead with that. It is also important for us to understand the Indian market and its specific requirements. We do not want to bring a model which customers should consider as imposed,” he said.

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