The central government is preparing to roll out the red carpet for Elon Musk and Tesla. There is news that Elon Musk is going to set up a manufacturing plant for Tesla in Gujarat. On the other hand, a different game has started in Tamil Nadu. An auto company has announced to set up an EV manufacturing unit in the Tamil Nadu Global Investor Meet. It is considered to be a big rival company of Tesla. Which can spoil the calculations of Elon Musk and Tesla in India. The name of that company is Vinfast. Which is one of the top EV companies in the world and a big famous company of Vietnam. According to the information, EV maker Vinfast will invest more than two billion dollars i.e. 16 thousand crore rupees in Tamil Nadu.
Investment of Rs 16 thousand crores
The company said in a statement that Vinfast and the Tamil Nadu government will work towards a total investment of two billion dollars (more than Rs 16,000 crore) with a commitment of $ 500 million for the first phase of the project in the state. This investment will be made within five years. This move is an important step in VinFast's expansion in the world's third largest automobile market. VinFast will set up an EV car and battery manufacturing unit in Tuticorin with an investment of Rs 16,000 crore, Tamil Nadu Chief Minister MK Stalin said in a social media post. This is not just an investment. This is a big leap for economic growth in South Tamil Nadu.
3500 jobs will be created
This proposal of the Vietnamese firm is likely to create about 3,500 jobs. Vinfast's Tamil Nadu project aims to achieve an annual production capacity of up to 1.50 lakh units in the region. Construction of the production unit is expected to begin this year. Vinfast's Global Deputy CEO (Sales and Marketing) Tran Mei Hova said that this project will lay a strong foundation for economic growth across India including Tamil Nadu. This will also accelerate the direction of green tech.
Elon Musk will face competition
VinFast has started work before Elon Musk's Tesla. This means that Vinfast will bring Make in India cars to India. Also, Elon Musk and Tesla will give tougher competition. Tesla's imported car will cost Rs 20 lakh. VinFast's Make India car is likely to be cheaper than Tesla. This means that Elon Musk and Tesla will have to face a price war in EVs. Elon Musk and Tesla will be able to survive in the Indian market only when they start making Make India cars. The Indian government is also trying to explain this to Tesla and Musk.
Hyundai also entered
On the other hand, Hyundai has also announced to invest about Rs 62 billion in Tamil Nadu. Under which the company will set up a manufacturing unit for EV and battery. Around 500 to 1000 jobs are likely to be generated from this unit. This means that it will be easy for Tesla to enter India, but it will have to face tough competition. A big stage has been set for this in Tamil Nadu. Now it remains to be seen how Tesla will compete with a big company like Vinfast?
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