Vietnam’s VinFast Set to Assemble EVs in India, Eyes Local Expansion

The top passenger car manufacturer in Vietnam, VinFast, is getting ready to introduce its VF6 and VF7 electric cars in India as early as this month. Reservations should open soon. At a media gathering in Hanoi, VinFast Asia CEO Pham Sanh Chau confirmed the development and shared that parent company Vingroup is also in advanced discussions with several Indian states to introduce other ventures, including electric buses, renewable energy, and hospitality.

The VF6 and VF7, which are equipped with LFP battery cells, will compete in India’s growing mid-size electric SUV segment. These cars are anticipated to compete with products like the Maruti e-Vitara, Mahindra’s BE6 and XUV.e9, Hyundai’s planned Creta EV, MG’s ZS EV, and Tata’s Nexon and Curvv. Official pricing and range figures for the new VinFast EVs are expected to be announced soon.

VinFast’s vehicles will be assembled in India as Completely Knocked Down (CKD) units at its newly constructed facility in Thoothukudi, Tamil Nadu. This manufacturing plant, which is scheduled to begin operations in July, has an initial capacity of producing 50,000 units annually, with a projected scale-up to 150,000 units in subsequent phases. Phase I of the facility has already seen an investment of $500 million, part of a broader $2 billion commitment. The company expects to create around 3,500 jobs at the site and plans to increase localization efforts in order to maintain cost competitiveness. Notably, several components used in VinFast’s vehicles abroad are already supplied by Indian auto parts manufacturers.

As a subsidiary of the diverse Vingroup conglomerate, VinFast benefits from strong backing. Vingroup operates across a broad spectrum of sectors including real estate, hospitality, AI, software, cybersecurity, education, and healthcare. VinFast’s ambitions in India are far-reaching, beginning with the Thoothukudi facility, which was completed in just 15 months. The company envisions building a comprehensive EV ecosystem that includes public charging infrastructure, service centers, an electric ride-hailing network, and a buyback programme for older EVs.

Vingroup is also eyeing the Indian market for its clean energy and smart city initiatives, holding discussions with states like Andhra Pradesh and Telangana. Globally, VinFast sells its electric vehicles in 16 countries across North America, Europe, the Middle East, and Asia. With around 100,000 EVs sold in 2024 and a diverse lineup of electric cars, buses, bikes, and commercial vehicles, VinFast aims to eventually bring its full range of mobility solutions to India.