VinGroup's GSM to pit ownership-first e-taxis against Ola, Uber

Vietnam's largest e-taxi operator plans 5-city rollout with VinFast cars

Disrupting the traditional cab aggregator model of Ola, Uber, and Rapido, Vietnamese conglomerate VinGroup is set to launch its electric taxi (e-taxi) operations in India within the next two to three months through Green and Smart Mobility (GSM), a taxi company owned by VinGroup Chairman Pham Nhat Vuong.

 

GSM, which is potentially eyeing a Hong Kong listing and was recently valued at $20 billion, operates on a distinct model — it owns the e-taxis and employs the drivers, while also supplying cars to independent drivers or fleet operators. Vuong owns around 95 per cent of GSM.

 

Pham Sanh Chau, chief executive officer (CEO) of VinFast Asia, told Business Standard that the company plans to launch the service in five metros with 500 cars within the next two to three months, once regulatory approvals are in place.

 

“This is distinct from simple ride-hailing services. We will own the vehicles, and the drivers — always uniformed — will be employed by us so that service quality is better. We are also open to selling these taxis to independent drivers or fleet operators who wish to use VinFast cars,” Chau said. He added that the company plans to introduce a seven-seater multi-purpose vehicle (MPV) for the taxi service.

 

GSM operates both an app-based service and traditional ride-hailing cabs. Founded on March 6, 2023, by Vuong, it runs the largest e-taxi fleet in Vietnam under the Xanh SM brand, using vehicles supplied exclusively by Nasdaq-listed VinFast. GSM holds a 35-40 per cent share of Vietnam’s ride-hailing market, while Grab’s share is estimated at 35–50 per cent.

 

VinFast is set to bring its MPV Limo Green to India. The model quickly emerged as a top seller in Vietnam after its launch in August, with sales of nearly 11,000 units in December. Chau said GSM’s operations in India would be based on the Limo Green.

 

Using the same platform, the company will also launch another MPV — under a different brand — for the personal vehicle segment. This model will be more feature-rich, with additions such as a sunroof, enhanced audio systems, and more electronics, Chau said. The vehicle will be assembled as completely knocked-down units at the company’s Tamil Nadu plant.

 

VinFast has used GSM as a tool to build scale and brand recall in Vietnam. The electric vehicle (EV)-only carmaker holds over 30 per cent share of Vietnam’s overall 500,000-unit passenger vehicle market and leads the EV segment with an 80 per cent share.

 

According to Reuters, GSM accounted for 26 per cent of VinFast’s sales in the third quarter of 2025. GSM is also exploring expansion into Laos, Indonesia, and the Philippines.

 

Meanwhile, VinFast is deepening its India push. It plans to launch three new EVs this year, starting with the MPV, and is also preparing to introduce two-wheelers and electric buses (e-buses). The company aims to more than double its dealership network from 35 outlets currently to 75 by the end of 2026.

 

VinFast India CEO Tapan Ghosh said the company plans to launch one new vehicle every six months in India. “This year, however, we are bringing three EVs. We also plan to introduce our two-wheelers and electric buses in the second half of the year,” he said.

 

GSM also operates electric two-wheelers (2Ws) in Vietnam. With VinFast expected to roll out its 2Ws in India, GSM may also introduce 2W rental services in the country.

 

Ghosh said VinFast has acquired 500 acres in Tamil Nadu for a second plant, which will manufacture 2Ws and e-buses adjacent to its existing facility. The company currently operates a 50,000-units-per-annum plant spread across 400 acres at Thoothukudi, which it plans to scale up to 150,000 units per annum and use as an export hub. The existing plant is likely to be used initially for assembling e-buses and electric scooters (e-scooters).

 

VinFast has committed $1 billion to its automotive business in India, of which $500 million has already been invested in the first phase. The second phase will involve an extra $500 million investment at Thoothukudi to develop dedicated workshops and production lines for e-buses and e-scooters, covering manufacturing, assembly, testing, and related operations.

 

“Our first plant took 16–18 months to build. We have begun work on the second plant as well,” Ghosh said. 

 

(With inputs from Anjali Singh)