VinFast Plans Two India-Specific EVs In Strategic Reset: Report

VinFast, the Vietnamese electric vehicle manufacturer, is reportedly planning to develop two new electric vehicles specifically for the Indian market, according to a recent report by Reuters. The upcoming models, internally named VF X and VF Y, will be tailored to meet the unique requirements of the Indian market instead of adapting VinFast's existing global models.

The news of the new EVs comes after VinFast suspended production of certain cars in India and follows a strategic reset in its approach to the Indian EV market.

The VF X is expected to be a budget-friendly compact electric vehicle with a starting price below $12,000. The Indian market could also see revised lighting elements and new alloy wheels for VinFast's popular electric SUVs, the VF6 and VF9, as indicated by Autocar India. VinFast is believed to be reassessing the economics of localising its global models for the Indian market.

Despite initial reports suggesting that VinFast was halting its production in India, a representative from the company clarified that it will continue CKD (Chassis Cab Assembly) manufacturing of these new models at its Thoothukudi plant in Tamil Nadu. The company has already committed to investing $2 billion in India and has already set up a manufacturing facility in Thoothukudi, with an initial capacity of 50,000 vehicles per year, which is projected to grow to 150,000 units.

VinFast's recent traction in the Indian EV market has been impressive, with the company selling 2,198 electric passenger vehicles in August, marking its highest monthly sales since entering India. Its sales rose 44% from 1,531 units in July, securing a 7% share of the electric passenger vehicle market. VinFast has been actively engaging with local Indian suppliers and organizing supplier conferences in both Vietnam and India to explore deeper cooperation opportunities and promote localisation.