VinFast Shifts Strategy to Develop Affordable EVs for Indian Market

Vietnamese automaker VinFast is reportedly developing two new affordable electric vehicle (EV) models specifically for the Indian market, a strategic shift weeks after pausing plans to produce three global models in the country, according to Reuters. The new models, codenamed VF X and VF Y internally, are intended to be smaller and more affordable vehicles tailored to the needs of Indian consumers. The VF X, in particular, is envisioned as a model smaller than the VF 6 SUV but larger than the VF 3, with a target price point below $12,000. This would position VinFast in one of India's most competitive, yet largest, EV segments. Currently, the VF 6 is priced around $19,000 and the VF 7 starts from approximately $24,250 in India. VinFast had previously halted its plans to produce the VF 3, VF 6, and VF 7 locally in India in July, citing that production costs exceeded projected budgets. The automaker had instructed suppliers to "pause all activities" related to these three models while it reassessed costs and calculated outstanding payments. Currently, the VF 6 and VF 7 are imported as component kits from Vietnam and assembled at VinFast's plant in India. This move towards developing affordable models involves engaging local Indian suppliers from the early stages of development. The goal is to control costs from the outset and avoid repeating past issues. VinFast has committed to investing $2 billion in India and aims to transform the country into a manufacturing hub serving South Asia, the Middle East, and Africa. VinFast began selling cars in India in September 2025 and has sold approximately 10,000 vehicles to date. Its Indian plant has an initial capacity of 50,000 vehicles per year, which can be expanded to 150,000. The Indian government has set a target for EVs to account for 30% of total car sales by 2030, and VinFast sees significant growth potential in this market. VinFast has been undergoing corporate restructuring, including transferring its manufacturing operations in Vietnam to other entities. This is seen as a move to reduce future capital investment pressures, improve its financial structure, and focus resources on R&D, technology, branding, and market expansion. While its Vietnamese manufacturing arm has been divested, VinFast retains overseas plants in Indonesia and India. The company has also seen a series of management changes. In May 2026, Pham Nhat Quan Anh, the eldest son of billionaire Pham Nhat Vuong, was appointed Chairman of VinFast's Board of Directors. This is the second notable senior leadership change at VinFast in just over two years. Responding to BBC on September 1, VinFast stated that "for the models currently being sold in India, VinFast has not changed or suspended production plans as reported by Reuters sources." A company representative added via email, "These models continue to be assembled at the Thoothukudi plant (Tamil Nadu) in a CKD (Completely Knocked Down) format to meet market demand."