Green SM, a Vietnamese taxi operator utilizing electric vehicles from VinFast, officially launched its taxi service in India on Friday, marking VinFast's first major expansion outside Southeast Asia and into what could become its largest market to date [1]. Green SM accounts for approximately one-third of VinFast's sales, a significant figure for the Vietnamese electric vehicle manufacturer, which is currently experiencing financial pressure with losses widening to $3.9 billion, despite a doubling in EV sales [1].
The move targets India's nearly $1 billion taxi market, positioning Green SM in direct competition with established ride-hailing companies such as Uber and Ola [1]. The expansion is strategically aimed at diversifying VinFast's market presence and revenue streams, potentially offsetting ongoing losses by tapping into India's growing demand for electric vehicles [1]. This demand is being fueled by global events, including the Iran war and new emissions regulations, which are accelerating the shift from gasoline to electric vehicles in India [1].
Green SM's entry into the Indian market is supported by VinFast and its parent company Vingroup, with the intention of leveraging its electric fleet to attract environmentally conscious consumers and benefit from government policies that promote EV adoption [1]. The competitive landscape in India's taxi sector is intensifying, with both local and international players seeking to increase their market share [1].
This development is part of a broader trend across Asia, where electric vehicle sales are rising in response to higher fuel prices and regulatory changes. For example, Philippine EV sales have surged, and Indian EV manufacturers are collaborating with Chinese companies like Tata-Chery to address supply chain issues. Additionally, Mitsubishi Motors and Nissan are preparing to launch EV-to-grid power trading services, highlighting the region's growing focus on EV infrastructure and innovation [1].
CONCLUSION
VinFast's expansion into India through Green SM represents a strategic effort to diversify its market reach and address financial challenges by entering a rapidly growing EV market. The move positions VinFast to compete with established ride-hailing giants and capitalize on favorable trends and policies supporting electric vehicles in Asia. The market response is likely to be medium in impact, given the competitive landscape and the scale of the opportunity.