VinFast Plans Two India-Specific EVs After Strategy Shift

Vietnamese electric vehicle manufacturer VinFast is reportedly planning to develop two new electric vehicle models tailored for the Indian market. According to a Reuters report, the company is in preliminary discussions with Indian suppliers for the two models, internally codenamed VF X and VF Y.

The VF X is expected to be positioned as an affordable compact EV, with a target price below $12,000. This marks a significant shift in VinFast's India strategy, moving towards developing vehicles specifically for the local market rather than adapting its existing global models. This development comes after earlier reports indicated the company was halting production of select cars in India, though VinFast has confirmed it will continue CKD assembly of models at its Thoothukudi plant.

VinFast has committed to investing $2 billion in India, aiming to establish the country as a global manufacturing hub. The Thoothukudi facility, with an initial investment of up to $500 million, has an initial annual capacity of 50,000 vehicles, with plans to scale this to 150,000 units. The plant currently focuses on assembling the VF 6 and VF 7 models.

The strategic reset occurs as VinFast gains traction in the Indian EV market. In August, the company retailed 2,198 electric passenger vehicles, its highest monthly sales since entering India. Sales rose 44% from July, giving VinFast a 7% share of the electric passenger vehicle market.

Beyond manufacturing, VinFast has also expanded its presence in India by launching its Green SM Limo electric ride-hailing service in the Delhi NCR region. The company also reportedly plans to enter India's electric two-wheeler market soon, following the expected launch of its VF 6 and VF 7 electric SUVs in the country in 2025.