VinFast Begins India Production, Eyes Electric Vehicle Market Share with Mid-Premium SUVs
Vietnamese automaker VinFast has officially commenced production at its new facility in Thoothukudi, Tamil Nadu. This move not only marks its entry into the Indian market but also sets the stage for a wider regional push. With its first two electric SUVs, VF6 and VF7, set for launch, the company is betting on India’s evolving appetite for premium EVs.
Manufacturing Hub Goes Live in Just 15 Months
VinFast’s Thoothukudi plant has gone from foundation to production-ready in just over a year, with operations beginning on August 4. Spread across 400 acres in an industrial zone developed by the State Industries Promotion Corporation of Tamil Nadu, this is VinFast’s third operational factory globally and its first outside Vietnam.
The first phase involves an investment of $500 million out of a promised $2 billion, and the facility has an initial capacity to produce 50,000 vehicles annually, scalable to 150,000 as demand grows. Around 3,000 to 3,500 direct jobs are expected to be created in the region.
The plant’s proximity to the V.O. Chidambaranar Port makes it ideal not just for local supply but also for export, particularly to Sri Lanka, the Maldives, and potentially Middle Eastern and African countries. VinFast reportedly evaluated 15 sites across six Indian states before choosing Tamil Nadu, citing robust infrastructure and an existing auto manufacturing ecosystem.
Retail Push Already Underway
Even before the first vehicle rolled off the line, VinFast had laid the foundation for its retail network in India. The first dealership opened in Surat in late July, followed by a flagship 4,700 square foot showroom in Chennai’s Teynampet. Both outlets offer sales, service, and charging support.
The company has aggressive plans to establish 35 dealerships across 27 cities by the end of 2025. These include metro hubs like Delhi, Mumbai, Bengaluru, and Hyderabad, as well as tier-2 cities such as Shimla, Agra, and Gwalior. The dual-model launch strategy and wide retail reach suggest a fast-paced expansion roadmap.
Two Electric SUVs Tailored for India
VinFast’s VF6 and VF7 SUVs will lead its India portfolio. The VF7, the more premium of the two, comes equipped with Level 2 ADAS, a panoramic roof, wireless charging, a 12.9-inch infotainment touchscreen, and a 75.3 kWh battery pack offering up to 450 km range. It will be available in both single- and dual-motor configurations.
The VF6 is aimed at families and priced more competitively, with a 59.6 kWh battery promising up to 440 km range. It shares key features with its larger sibling, including connected tech and ADAS functionality.
Pre-bookings opened on July 15 with a fully refundable ₹21,000 deposit. Pricing is expected to range between ₹18–24 lakh for the VF6 and ₹30–35 lakh for the VF7. Deliveries are likely to begin soon after production ramps up.
Looking ahead, VinFast is preparing to launch the VF3, an affordable, two-door compact SUV targeted at city buyers, by early 2026. Expected to be priced between ₹7.5–10 lakh, it will compete with models like the MG Comet and Tata Tiago EV.
Building a Full EV Ecosystem
VinFast is going beyond car sales by building a connected EV ecosystem in India. It has partnered with RoadGrid, myTVS, and Global Assure to support charging infrastructure and after-sales service. A total of 120 extended service workshops are being rolled out to back its customers across the country.
On the sustainability front, the company has signed an agreement with BatX Energies for battery recycling. This will allow VinFast to reclaim and reuse critical minerals like lithium, nickel, and cobalt, supporting a closed-loop manufacturing process.
Warranty coverage is another standout. VinFast is offering a 10-year or 200,000 km vehicle warranty and eight years of unlimited mileage coverage for batteries. Such long-term support may prove attractive to EV adopters still hesitant about battery life or serviceability.
Targeting the Mid-Premium Gap
VinFast enters an increasingly competitive EV market in India. Domestic brands like Tata and Mahindra dominate the lower end, while luxury players including BMW, Mercedes-Benz, and the upcoming Tesla rollout are eyeing the top. VinFast, however, is aiming for the middle ground; urban buyers willing to spend for better features, design, and warranty coverage.
While the company does not see Tesla or BYD as direct competition, its product positioning overlaps with both. The Vietnamese brand’s approach, however, is more integrated, offering not just vehicles but end-to-end support including sales, charging, warranty, and recycling.
With a clear focus on mid-premium SUVs, strong retail push, and long-term production strategy, VinFast is betting big on India not just as a market, but as a hub for its regional and global ambitions. The next few quarters will reveal whether the bold bet pays off.