VinFast plans to acquire Ford India factory
VOV.VN - Vietnam’s leading electric vehicle automaker VinFast is considering the purchase of a Ford India plant in Chennai as a potential location to start its operations in India as part of its top-down approach to enter the Indian market, according to Indian newspaper Money Control.
The Vietnamese automaker is expected to begin with completely built imported units and knocked-down kits, before then progressing towards establishing local manufacturing facilities.
The move fits with VinFast's efforts to expand its operations and presence in the EV market, leveraging existing facilities as a means of enhancing production capabilities and catering to the Indian market's growing demand for EVs.
The potential acquisition of Ford India's factory in Chennai is one of the greenfield alternatives being examined by VinFast in India.
The media outlet noted that the Ford India plant located in Chengalpattu, near Chennai of Tamil Nadu, has a substantial manufacturing capacity of 210,000 units.
However, considering the evolving landscape of EV volumes in India, VinFast is expected to initially opt for a lesser manufacturing capacity which aligns with the current stage of EV adoption and demand in the South Asian country.
Meanwhile, Nikkei news service of Japan recently reported that VinFast plans to build factories in India and Indonesia with an investment of US$1.2 billion in order to fully optimise its costs.
VinFast, which has enjoyed huge success in the domestic market, has initially delivered its cars to consumers in the United States and Canada. It is planning to sell its products in France, Germany, the Netherlands and other markets in Europe.
In August, VinFast became the first Vietnamese enterprise listed on the US stock market.
