VinFast Auto India signed a Memorandum of Understanding with State Bank of India on Sunday to provide inventory financing for its exclusive dealer network, marking a strategic partnership to accelerate electric vehicle adoption in India. The collaboration enables the Vietnamese EV manufacturer to leverage SBI's extensive pan-India branch network and digital platforms to reach customers across urban and emerging markets.
The dealer finance agreement positions VinFast to strengthen its distribution network in India, one of the world's fastest-growing EV markets. SBI, which holds a 25% share of India's total loan and deposits market, will extend financing to VinFast dealers with favorable terms including attractive interest rates and flexible repayment options.
The MoU was signed in Gurugram by Pham Sanh Chau, CEO of VinFast Asia, Anindya Sunder Paul, Deputy Managing Director at State Bank of India, and Debasis Mohanty, General Manager for SME & SCF at SBI.
"At VinFast, we believe that a vibrant EV ecosystem can be built on two strong pillars, engaged customers and an empowered dealer network," said Chau. "This partnership with SBI marks a crucial step in strengthening our dealer network and empowering them with seamless access to credit solutions. By working with one of India's largest and most trusted banking institutions, we are creating a stronger financial backbone that supports our dealers in expanding operations and serving customers with confidence."
Paul said: "As EV adoption accelerates, access to financing will play a vital role in driving this transition. Our collaboration with VinFast will offer customers convenient credit solutions tailored to its premium EV lineup, reflecting the Bank's broader commitment to sustainability."
VinFast recently launched its VF 6 and VF 7 models in the Indian market. The company, a subsidiary of Vietnam's Vingroup JSC conglomerate, trades on NASDAQ under the ticker VFS and manufactures electric SUVs, e-scooters, and e-buses.
The partnership comes as India's EV market experiences rapid growth, with manufacturers seeking to establish robust dealer networks and financing solutions. SBI, ranked 47th globally by total assets and the only Indian bank in Fortune Global 500's 2024 list, provides VinFast access to one of India's most extensive banking networks.
VinFast is expanding its global distribution network across North America, Europe, and Asia while increasing manufacturing capacities to support its growth strategy in key international markets.