VinFast requests reduction in India EV import duties

    VinFast joins Tesla in asking for import tax reduction; requested to reduce to 70-80 percent from 100 percent.

    Published On Feb 26, 2024 12:18:00 PM

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    VinFast has requested the Indian government to cut import duties on cars for around two years. The Vietnamese brand hopes customers will be able to familiarise themselves with its models before the plant in Tamil Nadu begins churning out EVs, a company executive informed Reuters. 

    The EV maker has begun building the factory in Tamil Nadu and aims to begin production by the middle of 2025, first for domestic sales and later on exports, India CEO Pham Sanh Chau informed the newswire. The company and the Tamil Nadu government will work toward an investment of up to USD 2 billion (about Rs 16.578 crore), with a commitment of USD 500 million (about Rs 4,144 crore) for the first five years. 

    Like Tesla, VinFast has also requested for a reduction to India's 100 percent import duty on fully built EVs, a move that has not been held in favour by domestic automakers, Reuters noted. The Indian government has been considering the requests, but a decision has not been taken, a government official noted last month. 

    Chau said on the sidelines of the event that they requested for a reduction in import duties to 70-80 percent, for two years, and for a very limited number of cars, for customers to get used to the products, the newswire further reported. 

    He added that they will move ahead with the construction of the manufacturing facility while waiting for the final decision of the central government. 

    Chau, a former Vietnamese ambassador to India said the company is closely collaborating with around 55 dealers to establish a sales network and could also look to sell its two wheeler models later in the country, Reuters reported. 

    SOURCE

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