Rumour: Vinfast looking to acquire Ford's Chennai plant

VinFast could foray into the Indian market with the VF e-34 electric crossover.

Vietnam-based EV maker, VinFast Auto, plans to enter the Indian market next year. As per the latest reports, the brand could be looking at producing its EVs in India.

VinFast could foray into the Indian market with the VF e-34 crossover. Initially, it could be imported via the CBU route. However, the company is also said to be looking to acquire Ford’s Chennai factory. It has made the initial enquiry, and preliminary discussions are ongoing.

Reports suggest that VinFast is exploring at least a 1 lakh unit facility in the country and has already explored multiple alternatives in Gujarat and Tamil Nadu. The company plans to adopt a top-down approach but will eventually manufacture its products in India. The Indian factory will not only serve the domestic market, but will also cater to other right-hand drive markets.

Ford has been looking for a buyer for its Chennai unit ever since it decided to exit the Indian market. This facility has a capacity of 2.1 lakh units per annum. Earlier, Ford’s Sanand factory in Gujarat was acquired by Tata Motors for Rs 725 crore.

Source: Autocar India