Vietnamese electric vehicle maker VinFast has announced its entry into the Indian market with two premium electric SUVs, the VF6 and VF7, unveiled at the India Auto Show in New Delhi. The move positions VinFast against established players such as Mahindra & Mahindra and China’s BYD, as it seeks to capitalize on India’s growing EV market, the world’s third-largest car market.
“We are turning our focus to India – our next growth frontier,” said Pham Sanh Chau, VinFast’s Asia CEO. The Nasdaq-listed automaker, which primarily operates in North America and Vietnam, aims to contribute to India’s push for net-zero carbon emissions while addressing challenges stemming from its deepening losses amid softer global EV demand.
VinFast has committed $500 million over five years to India, investing in a car and battery manufacturing facility in Tamil Nadu. The factory, now under construction, will initially produce 50,000 cars annually, with scalability to 150,000 units based on demand. Additionally, the company is building its dealership network and evaluating investments in EV charging infrastructure.
Like Tesla, VinFast has requested the Indian government to reduce the 100% import tax on fully built EVs to facilitate sales while its factory is under development. However, domestic automakers have expressed opposition to this proposal.
India’s EV adoption remains at 2.5% of the 4 million cars sold in 2023, but the government is targeting a 30% market share for electric vehicles by 2030, supported by policies aimed at attracting global EV manufacturers.
