Vietnamese electric vehicle (EV) manufacturer VinFast saw its Indian sales skyrocket by over 2,000% in October 2025, selling 131 vehicles compared to just six in September. This dramatic increase was not a random spike in demand but the direct result of a meticulously planned market entry. October marked the first full month of customer deliveries following the brand’s “Made-in-India” launch, signaling the activation of its multi-billion-dollar strategy.
While the sales volume is modest compared to market leaders like Tata Motors (7,118 units) and JSW MG Motor (4,497 units), it was enough to make VinFast the eighth-largest EV seller in India for the month. More importantly, VinFast outsold its import-reliant rival, Tesla, which sold 40 units. This initial success demonstrates the power of VinFast’s three-pillar strategy focused on local production, smart product positioning, and a robust commercial ecosystem.
A Three-Pillar Entry Strategy
VinFast’s October performance was built on the simultaneous launch of its manufacturing, product, and commercial operations.
- Localized Production in Thoothukudi: The 131 vehicles sold were all produced at VinFast’s new assembly plant in Thoothukudi, Tamil Nadu. The facility was built in just 15 months and is part of a phased ₹16,000 crore (approx. $2 billion) investment. By manufacturing locally, VinFast avoids high import duties, allowing it to price its vehicles competitively against rivals. The plant is also positioned as an export hub for South Asia, the Middle East, and Africa, diversifying the company’s investment.
- Targeted Product Positioning: VinFast launched with two premium electric SUVs, the VF 6 and VF 7, priced to challenge the market from two directions. The VF 6, starting at ₹16.49 Lakh, competes with high-end variants of popular domestic EVs like the Hyundai Creta Electric and MG ZS EV. The VF 7, starting at ₹20.89 Lakh, undercuts more expensive imports like the Kia EV6 and Hyundai Ioniq 5, offering a feature-rich alternative at a lower price point.
- Rapid Commercial Rollout: To sell and support its vehicles, VinFast quickly established a physical presence across India. By late October, 24 dealerships were operational in major cities, with a target of 35 by the end of 2025. The company also secured partnerships with RoadGrid for charging, myTVS and Castrol India for service, and Global Assure for roadside assistance to build customer confidence from day one.
Crucial Financial Partnerships
A cornerstone of VinFast’s strategy is its comprehensive financing plan for both customers and dealers. This two-part approach was critical to enabling the October sales.
- For Customers: VinFast has built an extensive network of banking partners to lower the barrier to entry. The company signed agreements with major public and private sector banks—including HDFC Bank, State Bank of India (SBI), ICICI Bank, Yes Bank, Axis Bank, and Central Bank of India—to offer attractive loan options. These deals include low interest rates and up to 100% on-road funding, which removes the significant barrier of a large down payment for many buyers.
- For Dealers: To encourage a rapid network expansion, VinFast secured inventory financing from HDFC Bank and SBI. This provides dealers with the credit needed to stock their showrooms with vehicles from a new brand, reducing their financial risk and strengthening their ability to invest.
Strategic Outlook
VinFast’s impressive 2,083% sales increase was not a market fluke but the calculated outcome of a synchronized, well-funded strategy. The initial 131 sales, fueled by pre-bookings, prove that the company’s manufacturing, commercial, and financial systems are working in unison.
The company’s ability to outsell Tesla validates its decision to prioritize local manufacturing over a CBU-import model, confirming that competitive pricing and a strong distribution network are essential in the Indian market. The key challenge for VinFast now is to build on this initial momentum and achieve sustainable sales growth. While not yet a direct threat to volume leaders, VinFast has successfully positioned itself as a serious contender in India’s profitable premium EV segment.
