Exciting News : Vietnamese carmaker Vinfast created quite a stir at the recently concluded Auto Expo 2023 where it showcased its entire global line-up here. Vinfast is targeting a festive season unveil for the VF7 SUV, and is at the same time, set to follow it up with more affrodable offerings next year, with the Tamil Nadu plant on course for construction work to continue despite recent floods.

“VF7 will be our first premium model, getting into the mid-segment, Pham Sanh Chau, MD and CEO of the group’s context in Asia, told Autocar India. For India, we also have made efforts to bring the top-notch in the mid-premium segment, because here, the target is the top-end buyer in the mid-class,” Ford said. Then we will bring forward the VF6, and then the VF3 next year,” Chau said.

Product plan for India: top-down

The first model for India will be the VF7, which the company has confirmed and is expected around festive season. Though VF8, and VF9 are larger and more premium models that do well in markets like North America and the Middle East, it will be the VF7 that will serve as the flagship offering for India.The company aims to build CKD operations, starting with a capacity of 50,000 units, scaling up to 150,000 units in its first phase and working upwards in the portfolio from a premium to mass-market offerings.

“A 50,000 capacity can have multiple combinations of products which is right hand drive ready, so if required it can support products like VF3, VF5 and e34 too.” shared Chau.

“We intend to do CKD operations and that means body shop, paint shop and assembly. And it’s not that we want to apply for any scheme, it’s only that if we want to reduce the BoM prices, it reduces the tax also,” Chau said. According to the company, it has already commenced discussions with local suppliers and will progressively increase the local content before the mass-market models start being shipped in from next year.

Vinfast is also looking at potential partnerships for localizing cells and battery packs. “If we can get the battery made here, we will get about 30 to 40 percent of localization automatically,” Chau said.

Building brand awareness and establishing dealer network In a challenging market such as India, building a positive brand image will be very important if the company hopes to get a foothold. Having a product is one aspect but without an effective communication and network it would be hard to make a mark (take Citroen for example) To this end, Vinfast is counting on the brand image of its parent Vingroup.

“It’s the largest private conglomerate in Vietnam, it has very diversified businesses, it’s like Tata in India. “We have half a million visitors coming to Vietnam so they interact with the VinGroup brand through our hotels, shopping malls and, of course, all the cars,” added Chau.