Vietnamese automaker Vinfast is gearing up to enter the Indian market with a top-down approach, starting with premium models before introducing mass-market options. At Auto Expo 2025, the company showcased its global lineup, confirming plans to launch the VF7 SUV around the festive season this year. Following this, the brand will introduce the more affordable VF6, eventually expanding its portfolio with locally assembled electric vehicles.
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Vinfast’s Strategy for India
Vinfast will initially focus on the premium mid-segment, with the VF7 positioned as a high-end model for middle-class customers. According to Pham Sanh Chau, MD and CEO of Vinfast Asia, the company aims to attract affluent buyers before gradually launching more affordable models.
For India, the VF7 will be the flagship offering, even though Vinfast also sells larger models like the VF8 and VF9 in markets like North America and the Middle East. Instead of introducing its biggest vehicles, the company is tailoring its Indian strategy based on demand and infrastructure.
CKD Operations and Localization Plans
Vinfast will start with Completely Knocked Down (CKD) operations at its Tamil Nadu plant, which remains on schedule despite recent floods. The initial production capacity is 50,000 units, with plans to scale up to 150,000 units in the coming years. The company’s top-down product strategy will see premium models arriving first, followed by mass-market offerings like the VF3, VF5, and e34.
To reduce costs and taxes, Vinfast will localize key components, including body panels, paint, and assembly. Chau emphasized that this approach is not aimed at benefiting from any government schemes but is focused on reducing the Bill of Materials (BoM) cost. The brand is already working with local suppliers and aims to increase localization before launching mass-market models next year.
Vinfast is also investigating local battery manufacturing partnerships. If battery production is localized, the company could achieve 30-40% localization, further reducing costs and making EVs more affordable for Indian buyers.
Dealer Network and Brand Awareness
In India’s highly competitive auto market, brand awareness and dealer network expansion will be crucial for Vinfast’s success. The company plans to leverage the reputation of its parent group, Vingroup, which is Vietnam’s largest private conglomerate. Chau compared Vingroup to Tata in India, highlighting its presence in hotels, shopping malls, and various industries.
To ensure a smooth entry, Vinfast will initially focus on urban centers where EV adoption and charging infrastructure are already in place. The brand will gradually expand as more affordable models arrive in the mass-market segment. Interestingly, Vinfast may delay launches in regions like Punjab, where EV adoption is currently low.
Regarding dealerships, Chau clarified that Vinfast will focus on manpower and service quality rather than extravagant showrooms. The goal is to keep operational costs low, ensuring that customers don’t have to pay extra for unnecessary expenses.
Key Takeaways
Vinfast’s entry into the Indian market is well-planned, with a CKD-based production strategy, a gradual localization plan, and a focus on premium models first. With the VF7 launching around the festive season and the VF6 following soon after, the company aims to establish itself before expanding into mass-market segments.
By ensuring cost-efficient manufacturing, strategic dealership planning, and local battery partnerships, Vinfast is setting itself up for long-term success in India’s EV space.
FAQs
When will Vinfast launch in India?
Vinfast will launch the VF7 SUV around the festive season in 2025.
Which Vinfast model will come first to India?
The VF7 will be the first model, followed by the VF6 and VF3.
Will Vinfast manufacture cars in India?
Yes, Vinfast will start with CKD assembly at its Tamil Nadu plant.
Is Vinfast planning to localize battery production?
Yes, the company is investigating local partnerships for battery packs.
How will Vinfast sell its cars in India?
Vinfast will focus on urban centers with adequate EV infrastructure first.
