VinFast Halts Cars Production In India To Reassess Costs: Report

Vietnamese electric vehicle manufacturer VinFast has reportedly suspended production of certain models in India to reevaluate costs, according to Reuters. The company has instructed its suppliers to cease activities on three programs, including the VF3, VF6, and VF7 SUVs. VinFast believes that local manufacturing in India would help reduce costs and make its vehicles more competitive in the market.

The company has requested suppliers to provide information on their investments for the three vehicle programs, which has raised concerns about the financial implications for component makers and potential compensation for investments made. VinFast Asia CEO Tapan Ghosh has been contacted for comment. Earlier this year, VinFast planned to increase its annual electric vehicle production to 1.5 lakh vehicles in India and export them to the Middle East and Africa.

The company launched its first manufacturing facility in India at Thoothukudi, Tamil Nadu, with investments of up to ₹16,000 Cr ($2 Bn) and an additional $500 Mn in December. The facility is currently producing 50,000 vehicles annually, with plans to scale up to 1.5 lakh units once fully operational. VinFast will continue assembling the VF6 and VF7 models at the Tamil Nadu facility using completely knocked-down (CKD) kits imported from Vietnam.