Vietnamese conglomerate Vingroup is preparing to expand its electric cab operations in India, with its mobility subsidiary Green SM securing an aggregator licence from the Karnataka Transport Department. The approval clears the way for the company to enter Bengaluru’s app-based taxi market, although its arrival has already sparked opposition from local driver associations.
The licence has been issued under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, and remains valid until September 2031. Green SM is expected to compete with established ride-hailing platforms such as Uber, Rapido and Namma Yatri.
Unlike conventional ride-hailing aggregators that primarily connect independent drivers with passengers, Green SM operates an owned fleet of electric vehicles and employs its own drivers. The company is offering fares starting at approximately ₹8 per kilometre, positioning itself as a potential low-cost alternative in Bengaluru’s cab market.
Taxi unions raise concerns over competition and compliance
Green SM’s proposed expansion has prompted objections from local taxi associations, including Karnataka Rajya Chalakara Parishath and Peace Auto Union. The organisations have approached the state government seeking a review of the company’s licence, citing concerns about the impact of increased competition on driver earnings and the need for regulatory compliance.
K Somashekar, president of Karnataka Rajya Chalakara Parishath, has questioned whether Green SM’s vehicles have completed the mandatory inspections required under state regulations. He alleged that the cabs must be equipped with fare meters, display boards and prescribed GPS systems before being allowed to operate.
The association has also raised concerns about the circumstances under which the licence was granted, alleging that certain High Court directions may not have been followed. It has called for the government to investigate these claims and take appropriate action if any violations are established.
Separately, the association has claimed that approximately 5,000 electric cabs have been brought into Bengaluru, with vehicles reportedly parked in areas such as Kengeri and Electronics City. These claims and the allegations surrounding regulatory compliance have not been independently established.
Green SM expands its presence in India
Green SM is the mobility business of Vingroup, the Vietnamese conglomerate that also owns electric vehicle manufacturer VinFast. The latter has established a manufacturing facility in Thoothukudi, Tamil Nadu, as part of its India operations.
Green SM began its Indian operations in June 2026 with its Green SM Limo service in Delhi-NCR. The company subsequently expanded into markets such as Hyderabad, with Bengaluru emerging as its next potential market.
Its Indian fleet includes the VinFast Limo Green, a seven-seater electric MPV designed for commercial passenger transportation. Green SM says its operations focus on professionally trained drivers and safety technologies, including cabin and exterior cameras, AI-powered systems and emergency assistance features.
Customers can access the service through its dedicated application and hotline, while street hailing is also available in areas where the company operates.
The company’s expansion comes after the exit of BluSmart, which had established an all-electric cab service in several Indian cities before abruptly discontinuing operations. Green SM’s entry could bring renewed competition to the electric mobility-based taxi segment.
Karnataka’s existing cab fare regulations
The entry of a new operator also raises questions about how Green SM’s pricing will align with Karnataka’s existing aggregator fare framework.
In 2024, the state introduced a standardised fare structure for app-based taxis, linking the permitted charges to the purchase price of the vehicle.
Under the framework, the prescribed fare for vehicles costing up to ₹10 lakh is ₹100 for the first 4 km, followed by ₹24 per additional kilometre. Vehicles priced between ₹10 lakh and ₹15 lakh attract a base fare of ₹115 for the first 4 km and ₹28 for every subsequent kilometre.
For vehicles costing above ₹15 lakh, the prescribed base fare is ₹130, with an additional ₹32 per kilometre. The regulations also prohibit aggregators from imposing surge pricing on passengers.
With Green SM advertising fares starting at around ₹8 per kilometre, its pricing structure is likely to attract attention from both regulators and competing operators.
The company’s entry could offer Bengaluru commuters another electric mobility option while intensifying competition in the city’s ride-hailing market. However, the extent of its operations will depend on compliance with existing transport regulations and how the Karnataka government addresses concerns raised by local taxi associations.
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