VinFast asks for cut in India’s EV tax: Report

VinFast asks for cut in India’s EV tax: Report

VinFast has asked India to lower its import duties on cars for about two years, so that customers can familiarize themselves with the product when the country’s manufacturing plant starts up, a senior company official told Reuters.

The Vietnam-based EV maker has started building the plant in Tamil Nadu and aims to start production by the middle of next year, first for domestic sales and later for exports, India CEO Pham Sanh Chau informed the news network.

The company and the Tamil Nadu government will work towards an investment of up to $2 billion, with a commitment of $500 million over the first five years, the news wire said.

Like Tesla, VinFast has also requested a reduction in India’s 100% tariff on fully-built EVs, a move that has not been supported by domestic automakers, Reuters noted. India has been considering the request, but no decision has been taken, a government official said last month.

Chau said on the sidelines of the event that they asked for a reduction in customs duties to 70-80%, for two years, and a limited number of cars, so that customers can get used to the products, the news network further reported.

He added that they will continue with the construction of the manufacturing center while waiting for the final decision of the central government.

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