The models, which will be locally produced, may be exported to markets of the Middle East and Africa.
18 Jan 2025 | 2815 Views | By Ketan Thakkar
VinFast, the Vietnamese electric vehicle specialist, has announced its brand launch in India. The company will enter the market with its mid-size SUVs in the second half of 2025.
The company will launch locally assembled mid-size SUV EVs VF7 and VF6 from its factory in Thoothukudi, Tamil Nadu. ...
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VinFast, the Vietnamese electric vehicle specialist, has announced its brand launch in India. The company will enter the market with its mid-size SUVs in the second half of 2025.
The company will launch locally assembled mid-size SUV EVs VF7 and VF6 from its factory in Thoothukudi, Tamil Nadu. They may eventually be exported to markets in Asia, the Middle East, and Africa.
Production of this model is scheduled to start in the second half of 2025, and the company will launch these SUVs ahead of the festive season in 2025.
Pham Sanh Chau, CEO of VinFast Asia, says the company has entered India with a strong determination to stay long-term.
“Our chairman believes that EV is a devotion project for society. It is a service to humanity for a greener future. The factory construction is in full swing, and the company plans to roll out the first vehicle assembled in the country by the second half,” he said.
VinFast today officially announced the launch of the brand in India, unveiling two models, VF7 and VF6, which will be launched just ahead of the festive season in 2025.
The company’s SUVs will be positioned in the same segment as the Mahindra BE 6, XEV 7E, Hyundai Creta EV, Tata Curvv, and Harrier EV segments. The pricing will likely be in the Rs 20-30 lakh range.
The company will have dealers in the major metropolitan and tier-I cities covering 70% of the EV market.
VinFast’s group company may also build the charging network in India.
“We are putting in charging stations-we are open to any partnerships as long as they benefit the people of India,” he said.
The company is also exploring leasing options as part of its go-to-market strategy to offer accessible pricing to prospective buyers. The company is likely to offer a 10 year warranty for its batteries and may also introduce a buy-back scheme.
In Vietnam, the VinFast has a group company called FGF, into EV leasing, and that too may potentially enter the Indian market by the time model is ready for a market launch in the second half of 2025.
Following Global go to market strategy in India
The brand's entry into India will mirror its entry into Southeast Asian markets like Indonesia, which started with vehicle production. Eventually, the entire VinFast value chain began operations – right from charging station, financing, and leasing- to offer peace of mind ownership experience, claimed the company.
A newcomer in the global automotive industry, the company has entered the European, US, and Southeast Asian markets over the last half-decade. Even with its plans for India, the company is moving very rapidly. In less than 12 months, VinFast moved from announcing its entry to starting the factory construction, and within six months, the first model will roll out of the assembly in the H2 of 2025.
Chau, a former Ambassador of Vietnam in India and now the CEO of VinFast Asia, says this is just the start. The company will look to expand its portfolio and may eventually enter the country's electric buses and people mover van segment.
“We start with VF7 and position ourselves as the premium EV maker in the country. The car will be aimed at the higher middle-class population. Our vehicle will boast many features; we are developing a good policy regarding sales and service. We may offer battery leasing in the future. The battery will come with 10 years of warranty. We will have a good network of dealers,” he said.
The manufacturing facility in South India will look to cater to the demands of the Middle East and Africa from India. Chau said the priority is the domestic market, but the reason why VinFast chose to open a plant close to port so that it can exports vehicles from India overseas.
“Hopefully, we will be able to enjoy the government's incentive to export vehicles,” he added.
The company also hopes to take advantage of the Government of India’s proposed EV policy. Chau says the policy was announced while VinFast was making investments in India.
“We are in discussion with the officials and the ministry to avail ourselves of benefits from the government of India for EV - both the ministry of road transport and highways and heavy industries. They are very supportive. They consider that to support all the new and old investors.”
Given VinFast's commitment to local industries, Chau says the government should extend support.
"We bring in investment, we bring in money, we bring in jobs. We bring technology, and we support localization. Through our investment, we are supporting the growth of the local industries. They are very supportive. I think that they consider that to support all the new investors and old investors
The initial capacity will be 50,000 units, which can be scaled upto 1.5 lakh units annually.