New EV policy to help launch many premium-quality SUVs: VinFast Auto

Vietnam's electric car maker VinFast Auto on Monday said India's new electric vehicle policy that provides import duty concessions for companies setting up manufacturing units in the country with a minimum investment of USD 500 million will allow it to introduce a wide variety of eco-friendly premium-quality SUVs at inclusive prices.

The Indian government's new electric vehicle (EV) scheme aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero-tailpipe emission vehicles, VinFast India CEO Pham Sanh Chau said in a statement.

"This forward-looking policy helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding aftersales policies," he added.

Chau further said, "With a long-term growth commitment in India, we have pledged an expenditure of USD 500 million, which includes the electric vehicle manufacturing facility in Tamil Nadu."

In February this year, VinFast -- a major competitor to American EV had stated that it would invest Rs 4,000 crore over the next five years in the initial phase, which will generate 3,500 jobs in the Tuticorin region.

The plant will have a capacity to produce 1.50 lakh vehicles once it becomes operational.

Ola Electric Founder and CEO Bhavish Aggarwal in a post on X, also lauded the new EV policy, saying it is a win for the Make in India initiative.

"Great to see the Indian government's progressive decision to lower import duties on EVs for companies investing in India. This is a win for the #MakeInIndia initiative & strengthens our manufacturing ecosystem, propelling India towards a greener future. India will become the global EV hub of manufacturing and technology!," he wrote.

Commenting on the policy, Society of Indian Automobile Manufacturers (Siam) President Vinod Aggarwal said a holistic view has been taken by the government of India in the best interests of the country.

"The Indian automobile industry and members of Siam will adapt to this new policy and remain committed to bring new, innovative, and aspirational products and work towards developing a robust EV ecosystem in the country," he added.

Last week, the government approved an EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million, a move aimed at attracting major global players like US-based Tesla.

The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government.

At present, cars imported as completely built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000.

The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global EV manufacturers.