VinFast’s India Entry: Premium First, Affordable Later
Vietnamese carmaker VinFast is all set to enter the Indian market, starting with the VF7 SUV in late 2025. The company, which recently showcased its global lineup at Auto Expo 2025, is taking a top-down approach by first launching premium models before rolling out more affordable EVs like the VF6 and VF3 in 2026.
The move aligns with VinFast’s global strategy of establishing a strong brand presence with high-end models before expanding into mass-market segments.
VF7 SUV to Lead the Charge in 2025
VinFast has confirmed that its first launch in India will be the VF7, which is set to be positioned as a mid-premium SUV catering to urban buyers. While the company has larger, more premium models like the VF8 and VF9, these will not be part of its initial India portfolio.
According to Pham Sanh Chau, MD & CEO of VinFast Asia, “We will position the VF7 first as a premium model in the mid-segment. After that, we will launch the VF6 and then introduce the VF3 next year.”
CKD Operations and Local Manufacturing Plans
VinFast’s Tamil Nadu plant is on track despite recent floods, and the company will begin CKD (Completely Knocked Down) assembly operations later this year. The brand aims to start with a 50,000-unit production capacity, which can be expanded to 150,000 units over time.
Instead of importing fully built units (CBUs), VinFast plans to assemble models locally to reduce costs and take advantage of tax benefits. The company is also working with Indian suppliers to increase localization, particularly for battery cells and components.
“If we can manufacture batteries locally, we will automatically reach about 30-40% localization,” Chau said.
Creating Brand Awareness and Expanding Dealer Network
For any new entrant in India, establishing brand credibility is crucial. VinFast hopes to leverage its parent company, Vingroup, which is Vietnam’s largest private conglomerate.
“Many Indians visiting Vietnam are already familiar with the Vingroup name through our hotels, shopping malls, and cars. This will help us establish credibility in India,” Chau explained.
The brand also plans to focus on urban centers where EV adoption is already gaining traction before expanding to smaller cities. “We will start with markets that are already buying EVs. For instance, Punjab is a large market, but since EV demand is low there right now, we may delay entry,” Chau added.
Conclusion
VinFast’s entry into India is an exciting development, especially with its commitment to affordable EVs. The VF7 will cater to premium buyers first, while the VF6 and VF3 will be targeted at budget-conscious customers.
With its localized production strategy, expanding dealer network, and focus on affordability, VinFast is positioning itself to compete with Tata, Mahindra, MG, and Hyundai in India’s fast-growing EV segment.
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