VinFast Halts Select Car Production in India for Cost Reassessment
Vietnamese EV maker VinFast has reportedly halted production of select cars in India to reassess costs. The company has requested suppliers to pause activities on three vehicle programs.
Vietnamese electric vehicle manufacturer VinFast has reportedly paused the production of certain car models in India as it reassesses costs. According to Reuters, the company has instructed its suppliers to halt all activities related to three programs, including the VF3 two-door SUV and the VF6 and VF7 SUVs.
Sources indicate that VinFast has been unable to meet its planned cost targets for local development and component sourcing in India. The company had aimed for local manufacturing to reduce expenses and ultimately price its vehicles more competitively within the Indian market.
The report further suggests that VinFast has asked suppliers to provide details on investments already made for these three vehicle programs. This raises concerns about the potential financial impact on component manufacturers and whether they will receive compensation for tooling, engineering, and other project-specific investments.
Last year, VinFast outlined plans to scale its annual EV production in India to up to 150,000 units and export them to markets in the Middle East and Africa. Following this announcement, the company inaugurated its first manufacturing facility in India, located in Thoothukudi, Tamil Nadu.
It is important to note that this production halt does not necessarily signify an end to vehicle sales in India. VinFast will continue assembling the VF6 and VF7 models at its Tamil Nadu facility using completely knocked-down (CKD) kits imported from Vietnam.