VinFast, a Vietnamese company initially known for producing instant noodles, has embarked on a daring journey into the electric vehicle (EV) market, with India as a key part of its global expansion strategy. The company's transition from food manufacturing to high-tech automotive production highlights its ambition and willingness to take risks in pursuit of growth. VinFast's approach to the Indian market involves significant investment, a focus on localization, and a comprehensive EV ecosystem strategy.
Investment and Manufacturing
VinFast has committed to investing $2 billion in Tamil Nadu, India, with an initial investment of $500 million over five years. This investment includes the establishment of a manufacturing plant in Thoothukudi, which was inaugurated in August 2025. The plant is expected to initially produce 50,000 vehicles annually, with plans to increase production to 150,000 units per year. The location was chosen for its strong logistics network, including access to a port and an airport. The Thoothukudi facility is intended to serve as a regional export hub, with the potential to ship vehicles to South Asia, the Middle East, and Africa. VinFast has already received vehicle orders from Sri Lanka, Nepal, Mauritius, and other countries in these regions.
Product Lineup and Pricing
VinFast has launched two electric SUV models in India: the VF 6 and VF 7. The VF 6 is a compact SUV, while the VF 7 is a larger, more advanced model. As of September 2025, the ex-showroom price for the VF 6 starts at ₹16.49 lakh, while the VF 7 starts at ₹20.89 lakh. Both models are available in multiple variants, with different battery options, performance levels, and features. The VF 6 is equipped with a 59.6 kWh battery, offering a range of 380-468 km depending on the variant. The VF 7 offers a choice of 59.6 kWh or 70.8 kWh batteries, with a range of up to 532 km in select trims. Higher-end versions of the VF 7 also feature all-wheel drive.
Ecosystem Approach
VinFast is not just focused on selling cars in India; the company aims to build a complete EV ecosystem. This includes investments in charging infrastructure, service networks, and partnerships with local companies. VinFast is planning to set up fast-charging stations across key cities and is partnering with companies like RoadGrid for charging solutions and V-Green for long-term charging network support. The company is also collaborating with myTVS for vehicle servicing and Global Assure for 24/7 roadside assistance. Furthermore, VinFast has partnered with the Central Bank of India (CBI) to provide retail car financing to customers through its dealer network. This partnership aims to make EV ownership more accessible by offering attractive interest rates, flexible repayment options, and other benefits.
Market Strategy and Challenges
VinFast's strategy in India involves targeting both metropolitan and Tier 2/Tier 3 cities. Instead of directly competing with established automakers in major urban centers, VinFast is initially focusing on smaller cities and utilizing car workshops as sales hubs. This approach allows the company to tap into the growing demand for EVs in semi-urban areas and build a presence in underserved markets. VinFast faces several challenges in the Indian market, including building brand recognition, ensuring competitive pricing, and establishing a robust after-sales service network. The company is also working to localize its supply chain and source car parts locally to reduce costs and improve competitiveness.
Recent Developments
In September 2025, VinFast appointed Tapan Kumar Ghosh as the CEO of its India operations. This appointment is expected to strengthen the company's strategic growth in the region and enhance its presence in the Indian EV market. VinFast has also inaugurated two new showrooms in Hyderabad, further expanding its retail footprint in South India. These showrooms will showcase the VF 6 and VF 7 models and provide customers with a premium EV experience.
