Vietnamese electric vehicle (EV) company VinFast Auto is about to enter India market with the way in which two top end electric SUVs, VF 7 and VF 6, to be launched this year. The company considers India a key market with tremendous growth opportunities and is positioning the company as a premium EV brand for the higher segment of the middle-income group.
Manufacturing Plant in Tamil Nadu
VinFast is committing USD 500 million to building a factory in Tuticorin, Tamil Nadu, which is targeted to be in operation by the end of 2025. The factory will be the foundation of the company’s India strategy, providing both domestic market access and exports to regions in South Asia, the Middle East, and Africa.
According to Pham Sanh Chau, CEO of VinFast Asia, the plant is expected to be finished by end of the first term or the beginning of the second term of 2025 and this will allow us to market our cars from that plant, They further commented that VinFast’s long term vision is to create an efficient ecosystem in India which includes a factory, sales centres, service centrals, and charging infrastructure in order to accelerate the EV transition.
Leveraging India’s EV Policy
VinFast is engaged with the Indian government to get its due for incentives within the framework of the new Indian EV policy, which provides import duty reductions to overseas manufacturers who make an investment of a sum not less than USD 500 million. Even though VinFast launched in the Indian market prior to the policy’s endorsement, Chau indicated optimism toward government backing, especially regarding exports.
At first, the company wanted to retail completely assembled (CBU) electric cars in India. Nevertheless, the decision to create a local manufacturing plant is a sign of commitment to the Indian market and a step to decrease import reliance.
Expanding to Premium EVs
VinFast targets India’s expanding middle-class demographic by offering its premium SUVs. “We see immense potential and opportunity here as India is already the third-largest automobile market globally, said Chau. The VF 7 and VF 6 SUVs are likely to boost adoption of EVs in India by offering sophisticated technology, upscale refinements, and good performance.
Export-Oriented Strategy
The strategic choice of Tuticorin for its manufacturing plant is influenced by its proximity to both a port and an airport, making it ideal for export operations. VinFast plans to ship vehicles from India to South Asia, the Middle East, and Africa. Chau noted, “This location allows us to efficiently export our products overseas while potentially benefiting from government export incentives.
Diverse Product Showcase at Expo 2025
The proposed BCA also exhibited a wide variety of vehicles at the Bharat Mobility Global Expo 2025, showcasing the breadth of its vehicle portfolio. Together with the VF 7 and VF 6, the company exhibited:.
- SUVs: VF 3, VF e34, VF 8, and VF 9.
- Electric scooters: Evo 200, Klara, Feliz, Vento, and Theon.
- Electric bike: DrgnFly.
- Pickup truck concept: VF Wild.
This lineup highlights VinFast’s commitment to offering a range of innovative and sustainable mobility solutions.
India’s Growing EV Market
India’s electric vehicle (EV) market is growing rapidly, thanks to government subsidies, growing consumer awareness and improvements in infrastructure. The country’s EV policy, approved last year, is designed to attract global manufacturers like Tesla and VinFast by reducing import duties for those establishing local manufacturing units.
Through its high-end products and a vision for the long term, VinFast is moving into a competitive but also a highly promising market. Concentrating on infrastructure building and coordinating with policy initiatives the company seeks a substantial share of the Indian developing EV market.
Challenges and Opportunities
While the Indian market presents significant opportunities, it also comes with challenges such as price sensitivity and competition from established players like Tata Motors, MG Motors, and Mahindra. VinFast’s strategy to establish a local manufacturing plant and develop charging infrastructure will likely play a pivotal role in overcoming these challenges.
The Road Ahead
The arrival of VinFast in the Indian market clearly demonstrates the increasing role of the country in the global EV market. With its manufacturing plant to start with production around 2025, the launch of the VF 7 and VF 6 SUVs will act as a flagship event to a wider introduction of VinFast’s offerings in India and beyond.
Through its emphasis on long-term investment, infrastructure and premium products, the company is well-suited to become one of the leading movers in India’s transition to electric mobility. As Chau explained, “At VinFast, we are excited by the huge opportunity of the Indian market. We come not just to sell cars but to build the whole ecosystem.
Disclaimer: The information provided in this article has been sourced from various news agencies. The views expressed are those of the respective agencies and may not necessarily reflect the views of the publisher.
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