Vietnamese operator Green SM has entered the Delhi-NCR market with a fleet of 1,000 VinFast electric MPVs, aiming to reach 10,000 vehicles. The company uses an asset-heavy model, prioritizing direct control over service quality. Investors and industry observers will track whether this strategy can overcome high operational costs and ensure consistent fleet utilization compared to asset-light aggregators.
Green SM, a mobility company from Vietnam, has launched its electric vehicle cab service, Green SM Limo, in the Delhi-NCR region. The company has started operations with 1,000 vehicles and has announced plans to expand its fleet to 10,000 electric MPVs. This entry marks a significant shift in the Indian ride-hailing sector, as the company is adopting an asset-heavy business model rather than the asset-light strategy used by major platforms like Uber or Ola.
Focusing on Direct Control
Unlike traditional ride-hailing platforms that connect passengers with independently owned vehicles and drivers, Green SM owns or controls its fleet. This approach is designed to give the company stricter control over service quality, driver behavior, and vehicle maintenance. By using the seven-seat VinFast Limo Green MPV, the company aims to offer a premium experience. However, this strategy carries higher financial risks. The company must bear the full cost of acquiring vehicles, maintaining them, ensuring charging infrastructure, and managing driver expenses.
Managing Operational Costs and Utilization
The Indian electric vehicle taxi market is complex, with high fixed costs posing a constant challenge. The business model depends entirely on high fleet utilization—the amount of time cars spend carrying paying passengers versus sitting idle. Historical context in the Indian market shows that managing these variables is difficult. For instance, the experience of other fleet-focused players in India, such as the temporary suspension of operations by some operators in early 2025, highlighted the difficulties of managing high capital spending and operational costs during periods of low demand or technical delays.
Green SM is attempting to mitigate these risks by integrating into the VinFast ecosystem. Since both Green SM and VinFast are linked to the Vietnamese conglomerate Vingroup, the mobility firm has access to a dedicated supply of vehicles, after-sales maintenance support, and charging infrastructure developed with V-Green. This vertical integration is intended to lower the cost of ownership and ensure the fleet remains operational.
Balancing Demand with Corporate Partnerships
To ensure its vehicles remain profitable, Green SM is not relying solely on individual passenger bookings. The company has secured a partnership with the Indian corporate-mobility firm Routematic. By integrating its electric fleet into workforce transportation services, Green SM aims to create predictable, contracted demand. This helps offset the risks associated with volatile consumer ride-hailing demand and improves the overall utilization rate of its 1,000-vehicle fleet.
The final success of this expansion will depend on how efficiently the company manages its unit economics. While premium service standards may attract customers, the viability of the business will be tested by its ability to keep the vehicles moving, control electricity and maintenance costs, and effectively scale its operations without incurring excessive debt or operational losses. Moving forward, the key monitorable for the business will be its success in balancing steady corporate demand with consumer ride-hailing performance.