VinFast has decided to accelerate the establishment of its manufacturing facilities in India and Indonesia to leverage attractive government incentives.
In a filing sent to the US Securities and Exchange Commission, VinFast noted that the target production start date for its completely knocked down (CKD) facility in Thoothukudi, Tamil Nadu, India, is expected to be in the first half of next year.
In Indonesia, the target production start date for its CKD facility is expected to be by the end of 2025. VinFast expects to break ground on its manufacturing facility in Indonesia within the next two months.
The facilities in India and Indonesia are each expected to have an annual capacity of approximately 50,000 vehicles for phase 1, with a potential ramp-up to 300,000 vehicles per year depending on market demand.
VinFast launched in the Philippines in May, and the electric vehicle (EV) maker is preparing to open a series of showrooms there, with sales commencing shortly after.
In addition, VinFast is expecting a 30-to-40-times increase in sales in the US market this year, from around $6.4 million in 2023. “We believe that this growth trajectory can be sustained over the next five years. We also expect to reach the break-even point soon,” VinFast stated in the filling.
As reported by Bloomberg, VinFast is pushing ahead with expansion across Asia, with founder Pham Nhat Vuong undeterred by slowing demand for EVs and a tepid start to the company’s foray into the United States.
“VinFast will reach the break-even point and be able to stand on its own feet,” he said.
The ambitious growth plans come as VinFast struggles to gain a foothold in the highly competitive EV market. The carmaker delivered just 9,689 cars in the first three months of the year, well off the pace to meet its annual 100,000 target. It sold 34,855 vehicles in 2023, most of which went to related parties.
