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VinFast is changing tack in India. The Vietnamese EV maker is reportedly working on two new electric vehicles designed specifically for the Indian market, rather than adapting existing global models. Internally codenamed VF X and VF Y, the two EVs are still at an early development stage, but the move could eventually give VinFast a much stronger presence in India’s highly price-sensitive EV market.
The strategy shift comes after VinFast suspended plans to manufacture three of its existing global models the VF 3, VF 6 and VF 7 in India. The company had reportedly found it difficult to bring production costs low enough to meet its intended pricing. The VF 6 and VF 7 will, however, continue to be assembled in India from completely knocked-down kits.
The more interesting of the two upcoming models is the VF X. VinFast wants it to be a compact EV positioned below the VF 6 in size, but slightly larger than the tiny VF 3. The idea is to create a relatively spacious small EV that fits Indian customer preferences without becoming too expensive to manufacture. VinFast is reportedly targeting a price of under $12,000, which works out to roughly Rs 10 lakh at current exchange rates.
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That would put the VF X directly into one of the most competitive parts of India’s EV market. Tata Motors currently has a strong presence in the affordable electric car space, while the likes of Hyundai, Mahindra and Maruti Suzuki are also expanding their EV portfolios. Getting below the Rs 10 lakh mark could therefore be a major opportunity for VinFast, but it will also be one of its toughest challenges.
Details about the second model, the VF Y, are even more limited. VinFast has begun initial discussions with Indian suppliers for both vehicles, but sources say the plans are still being evaluated and could change. The company itself has not officially confirmed the names, specifications or launch timelines of either model.
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What is clear is that localisation will be at the heart of the new strategy. VinFast has been speaking to Indian suppliers from the early stages of development, rather than designing the cars elsewhere and attempting to localise them later. The company has already engaged more than 300 Indian suppliers and wants to use locally available components and manufacturing capabilities to control costs.
This approach also ties into VinFast’s larger investment plans. The company has committed $2 billion to India and has received approval for the second phase of its Thoothukudi manufacturing facility. The plant currently has an initial capacity of 50,000 vehicles annually and is scalable to 150,000 units.
