Vietnamese electric vehicle (EV) manufacturer VinFast is encountering early challenges in its India expansion, as many of its appointed dealers have pulled back, casting uncertainty over the company’s retail strategy in one of the world’s fastest-growing EV markets.
VinFast had previously signed letters of intent with dealers for 40 locations across India but now retains only eight to ten partners, according to a report by The Economic Times. Several dealers reportedly exited due to concerns over VinFast’s distribution planning, pricing clarity, and inconsistent brand positioning.
One dealer who withdrew said, “There’s no visibility on how many showrooms they want, what kind of pricing strategy they will follow, or what sort of sales volumes to expect.” Another dealer cited a lack of marketing momentum following VinFast’s debut at the Auto Expo 2025, adding that public awareness of the brand remains limited.
Compounding the uncertainty, sources familiar with the matter said Ashish Jain, VinFast’s Head of Dealer Development in India, has left the company. The departure comes at a critical time, as the automaker prepares to establish a market foothold.
VinFast has invested in a production facility in Thoothukudi, Tamil Nadu, with an annual capacity of 50,000 vehicles. The plant was originally slated to begin assembling EVs from completely knocked-down (CKD) kits on June 30 but has postponed the start of production to July 30 due to the lag in setting up its dealership network.
The company plans to launch the VF 7 and VF 6 SUV models in India, with order bookings expected by mid-July and deliveries scheduled for mid-August. Target sales projections have been revised down from 4,500 to 3,000 units for the initial phase. A smaller model, the VF 3, aimed at the affordable segment, is expected to be locally manufactured and launched in 2026.
