Mrunal Manmay Dash

Vietnamese electric vehicle (EV) maker VinFast on Monday said the Centre’s recent announcement of new EV policy would create competencies, upskilling and set up a robust supply chain in the country.

Pham Sanh Chau, Chief Executive Officer of VinFast India, said, “We highly value the Indian government’s new EV scheme as it aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero tailpipe emission vehicles.”

"This forward-looking policy helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding aftersales policies," he added.

The Central government had last week approved an EV policy that will allow companies that invest a minimum of Rs 4,150 crore in the country, meeting domestic value-added conditions, to import a limited number of vehicles at reduced customs duties.

The policy aims to attract major multinational companies such as Elon Musk’s Tesla and promoting India as a manufacturing destination. The policy gives investors three years to set up manufacturing facilities in India, start commercial production, and reach 50 per cent domestic value addition (DVA) within five years at the maximum (25 per cent by the third year).

In January, VinFast signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up an integrated EV plant in the State. It will bring the completely knocked-down (CKD) parts of the EVs and assemble them at the plant, which has an initial capacity of 50,000 vehicles per annum.