Vietnamese electric vehicle maker VinFast is reshaping its India strategy by developing two new electric vehicles specifically for the Indian market. According to Reuters, the move comes after the company paused plans to locally manufacture three models from its global portfolio.
VinFast Pivots From Existing Global Models
VinFast reportedly suspended plans in July to produce the VF 3, VF 6 and VF 7 in India after finding it difficult to achieve the cost levels needed to meet its targeted pricing.
The company is now developing two India-focused EVs, internally referred to as VF X and VF Y. One of the upcoming models is expected to slot between the VF 3 and VF 6 in VinFast’s range.
Key Highlights
- Two new EVs being developed specifically for India
- Internally designated VF X and VF Y
- One model could target a price below $12,000
- Development follows the suspension of VF 3, VF 6 and VF 7 production plans
- India remains a key market in VinFast’s global expansion strategy
New EV Could Challenge Tata Nexon.ev
The VF X is reportedly being developed around a $12,000 (approximately ₹11.5 lakh) target price. This could position the electric SUV in the same broad segment as the Tata Nexon.ev, giving VinFast a potential contender in India’s growing mass-market EV space.
$2 Billion India Investment
VinFast, backed by Vingroup, has committed around $2 billion to its India operations. Its Tamil Nadu facility currently has an annual production capacity of 50,000 vehicles, with plans to eventually increase this to 150,000 units.
The plant is also intended to become an export hub for South Asia, Africa and the Middle East.
VinFast has yet to officially announce the new models, with their specifications and development plans still subject to change.
