Exclusive-VinFast plans to develop two India-specific EVs in strategy shift, sources say

Vietnamese automaker VinFast plans to develop two new electric vehicles specifically for the Indian market, a strategic shift announced by multiple sources. This decision comes just weeks after the company suspended global model manufacturing in India due to high costs. The move reflects VinFast's strategy to grow its presence in India, after struggling to reach scale in the US and Europe.

The company has pledged $2 billion towards its Indian operations, opening its first overseas factory there last year. Plans for the new models, internally referred to as VF X and VF Y, are still in the early stages of discussion with Indian suppliers. VinFast aims to introduce a compact and affordable entry-level EV under $12,000, similar to its popular VF 3 model in Vietnam.

The company is targeting EV sales that currently constitute over 7% of India's car market, with a goal of reaching 30% by 2030.