Key highlights
- VinFast will design, develop and manufacture future EVs specifically for India, rather than simply adapting existing global models.
- The company has received approval for Phase 2 expansion of its Thoothukudi plant, although investment, capacity and timeline are yet to be revealed.
- VF 6 and VF 7 CKD assembly will continue, while VinFast plans to build a larger Indian supplier ecosystem.
The Vietnamese electric carmaker, VinFast plans to develop EVs specifically for the Indian market, with a much higher level of localised content. The company says future products will not simply be existing global models modified for India. Instead, they will be designed and engineered around local customer requirements.
This is an important shift for a relatively new player in India’s EV market. VinFast has already conducted market studies and customer clinics to understand what Indian buyers want. Feedback from these exercises has reportedly been used to make changes to products such as the VF 6 and VF 7.
The company is also looking at significantly increasing localisation. VinFast has conducted supplier conferences in India and Vietnam involving more than 300 Indian suppliers as it works towards building a stronger local supply chain. The objective is to source more components domestically and reduce dependence on imported parts.
At the manufacturing end, VinFast has received investment approval for Phase 2 of its Thoothukudi plant in Tamil Nadu. However, the company has not yet disclosed how much it plans to invest, how much additional production capacity will be created or when the expansion will become operational.
Importantly, VinFast has clarified that its current VF 6 and VF 7 production plans have not been suspended. Both SUVs will continue to be assembled in India using completely knocked down (CKD) kits. This clarification comes after recent reports had raised questions about the company’s manufacturing plans in the country.
VinFast says India remains an important part of its long-term business and manufacturing strategy. The company currently ranks among the five largest electric passenger vehicle brands in India, according to its own assessment.
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