VinFast has a better start than Tesla in India, entering the top 8 electric car companies with the highest sales in October

Indian media commented that VinFast has risen thanks to its localization strategy and competitive prices in India, while Tesla is lagging behind in one of the fastest growing electric vehicle markets in the world.

VinFast accelerates in sales, has a better start than Tesla

The Indian electric vehicle market is entering a growth phase, and the race between two international newcomers, VinFast and Tesla, has become the focus of this year's festive season.

VinFast sales jumped to 131 in October, while Tesla saw sales drop to 40, the Business Standard reported. “The festive season saw a close race between two international newcomers Tesla and VinFast, with VinFast outperforming ,” the newspaper wrote. Data from Vahan, an Indian car platform, also showed that the total number of VinFast cars registered this year was 204, higher than Tesla’s 118.

This breakthrough helped the Vietnamese car company enter the top 8 electric car companies with the highest sales in India in October, according to ABP Live.

Photo source: Economic Times

In the article “Tesla faces difficulties as pragmatic consumers prefer VinFast”, Economic Times pointed out that Tesla and VinFast entered the market at a time when the Indian electric vehicle industry was entering the next phase of growth, but at “two very different levels”.

“Data shows that Vietnamese carmaker VinFast, though a ‘rookie’, is having a smoother ride in India than its veteran US rival, which has been slower to enter one of the world’s fastest-growing electric vehicle markets ,” the Economic Times said.

A clear localization strategy is the difference

Observers say the difference lies in the approach strategy. VinFast chose to “localize” early with a plan to build a factory in Tamil Nadu, focusing on the mid-range segment suitable for Indian consumers. After an impressive brand launch in the Indian market, last September, the company continued to introduce two SUV models VF 6 and VF 7 in the mid-range segment. In parallel, VinFast quickly expanded its network to 24 showrooms in major cities and is expected to reach 35 dealers by the end of the year.

VinFast VF 6 at its launch ceremony in the Indian market.

Sharing the same view, the article on ABP Live commented: “Aggressive pricing strategy and focus on the local market have given VinFast a competitive advantage, helping the company gain momentum in the expanding electric vehicle market.”

Meanwhile, considering its position as the world’s largest electric carmaker, Tesla had a rather slow start, distributing only imported Model Y models with a premium positioning, according to the Economic Times . The company still maintains a presence in major cities like Mumbai and Delhi, but is limited mainly to private import channels. In addition, Tesla has not yet committed to domestic production. “Tesla only wants to open showrooms and sell imported cars,” Indian Heavy Industries Minister Kumaraswamy expressed in mid-year.

From there, the Economic Times assessed that VinFast seemed to have the initial advantage and was accelerating with a clear localization strategy. In contrast, Tesla was slowing down and in fact, its reputation had not yet translated into strong sales.

Although the electric vehicle market share currently accounts for only about 3-4% of total car sales in India, experts say this is just the beginning. With the presence of names like VinFast, the Indian electric vehicle market is expected to expand rapidly in the coming years.

Nguyen Yen

Source: https://daidoanket.vn/vinfast-co-khoi-dau-tot-hon-tesla-tai-an-do-lot-top-8-hang-xe-dien-co-doanh-so-cao-nhat-trong-thang-10.html