Vietnamese EV maker VinFast is now reportedly eyeing the development of two new electric vehicles for the Indian market
The development comes days after reports suggested that the company is halting its production in India
VinFast is currently in initial discussions with suppliers in India for the two new models, internally codenamed VF X and VF Y
As per a report by Reuters, VinFast is currently in initial discussions with suppliers in India for the two new models, internally codenamed VF X and VF Y.
Inc42 has reached out to VinFast for comments on the development. The story will be updated based on their response.
The two models mark a shift in VinFast’s India strategy, with the company looking to develop vehicles specifically for the Indian market instead of adapting its global models. The VF X is expected to be positioned as an affordable compact EV with a targeted price below $12,000, the report added.
As per a report by Autocar India, the EV maker has also filed design patents in India for the facelifted versions of its VF6 and VF9 electric SUVs. The EV cars are some of its most sought after cars internationally. For the Indian market, the models could potentially get revised lighting elements, new alloy wheels, among other upgrades.
VinFast appears to be changing its India strategy after reassessing the economics of localising its global models.
The development comes days after reports suggested that the company is halting its production in India. However, a VinFast representative told Inc42 that it will continue CKD assembly of these models at its Thoothukudi plan.
To note, VinFast has committed to invest $2 Bn in India as it seeks to establish the country as a global manufacturing hub. The company had commissioned its Thoothukudi facility, with the first phase involving an investment of up to $500 Mn.
The Thoothukudi facility currently has an initial annual capacity of 50,000 vehicles, which is planned to be scaled to 150,000 units. It currently focuses on assembling the VF 6 and VF 7.
The strategic reset comes as VinFast has started gaining traction in the Indian EV market. The company retailed 2,198 electric passenger vehicles in August, its highest monthly sales since entering India, as per industry data. Its sales rose 44% from 1,531 units in July, giving it a 7% share of the electric passenger vehicle market.
“Recently, we have been actively engaging with local suppliers and have organised consecutive supplier conferences in both Vietnam and India, with the participation of more than 300 Indian suppliers, to explore deeper cooperation opportunities and promote localisation,” the representative added.The recent strategic shift comes at a time when the company is doubling down on the Indian EV market commercially. Earlier in June, the company also forayed India’s electric ride-hailing market with the launch of its Green SM Limo service in Delhi NCR.
Green SM, owned by VinFast parent Vingroup, operates an all-electric fleet comprising VinFast’s Limo Green, a seven-seater electric vehicle.
The EV maker was also planning to enter India’s electric two-wheeler (E2W) market this year, following the launch of its VF6 and VF7 electric SUVs in the country in 2025.