Vietnamese automaker VinFast has officially entered India with the launch of its VF 6 and VF 7 electric SUVs, betting on local manufacturing and ecosystem partnerships to gain a foothold in one of the world's fastest-growing EV markets. The company's Tamil Nadu plant, with an initial capacity of 50,000 units, represents a US$500 million investment and positions VinFast as the first foreign pure-play EV maker to set up production in India.
First foreign pure-play EV maker to manufacture locally
According to the Economic Times, India Today, and the Times of India, Pham Sanh Chau, CEO of VinFast Asia, described the launch as a historic milestone, stressing that the SUVs are "made in India, by Indians, for Indians." He added that VinFast's plans extend beyond cars, with ambitions to bring Vingroup's broader ecosystem—including smart cities, renewable energy, and mobility services—into the country.
The VF 6, priced from INR1.65 million, offers a certified range of up to 468 km, while the larger VF 7, starting at INR2.09 million, provides up to 532 km depending on variant. Both SUVs will compete in India's most active EV price band of INR1.5–2.5 million, putting VinFast in direct rivalry with Tata Motors' Nexon EV and Harrier EV, as well as Mahindra's upcoming BE range.
Aggressive pricing targets India's EV sweet spot
Analysts say VinFast's pricing strategy is aggressive compared with Tesla, which entered India in July 2024 with a base model above INR6 million, far above the sweet spot of Indian demand. Industry experts say VinFast's local manufacturing in Tamil Nadu, combined with battery recycling partnerships, could make its EVs more affordable and better supported by policies than Tesla's. This approach targets India's focus on cost competitiveness and local supply chains.
Building infrastructure and service networks
The company's partnerships with RoadGrid, myTVS, Global Assure, and BatX Energies aim to build out charging, servicing, and recycling networks—critical to addressing consumer concerns around infrastructure and sustainability. By year-end 2025, VinFast plans 35 dealerships and 26 workshops across 27 cities, covering both metros and emerging EV hubs.
VinFast's market entry coincides with India's accelerating EV adoption drive. Despite electric passenger vehicle sales nearly doubling in 2024, EVs captured just 7.6% of total vehicle sales—significantly below the government's 30% target for 2030. This performance gap creates opportunities for new entrants while highlighting persistent challenges in infrastructure development, cost optimization, and consumer education.
The Vietnamese automaker's arrival intensifies competition for domestic leaders Tata Motors and Mahindra, who currently dominate the electric SUV segment. Chinese competitor BYD faces ongoing political and regulatory obstacles, potentially giving VinFast a clearer runway to establish market presence. Success will depend on VinFast's ability to execute its manufacturing scale-up and ecosystem integration promises in India's rapidly evolving EV landscape.
Article edited by Jerry Chen
