VinFast to develop two India-specific EVs in strategy shift, sources say

VinFast is planning to develop two electric vehicles specifically for the Indian market, according to people familiar with the matter, a shift in strategy for the Vietnamese automaker as it looks to gain a foothold in one of the world's fastest-growing EV markets.

The company, which has been expanding aggressively outside Vietnam, has been studying Indian consumer preferences and road conditions. The two models would be designed from the ground up for India, the sources said, rather than adapted from existing global platforms.

Details on the vehicles, including size, price range, and launch timeline, are still being finalised. The sources spoke on condition of anonymity because the plans are not public.

VinFast has not officially announced the India-specific models. A company spokesperson did not immediately respond to a request for comment.

Why India matters

India is a critical battleground for electric carmakers. The government wants EVs to make up 30% of new car sales by 2030, and several states offer subsidies to buyers and manufacturers. But the market is dominated by small, affordable cars, and charging infrastructure remains patchy outside major cities.

That makes a one-size-fits-all approach risky. Global automakers have long tweaked their line-ups for India, adding ground clearance, retuning suspensions for rough roads, and stripping out features to hit lower price points. VinFast's move suggests it is willing to go further.

The company already has a manufacturing plant coming up in Tamil Nadu, part of a $2 billion investment announced last year. Local production would help VinFast avoid steep import duties and compete on price with domestic players like Tata Motors and Mahindra & Mahindra, both of which have aggressive EV roadmaps.

A crowded field

Tata Motors leads India's electric passenger vehicle market with models such as the Nexon EV and Tiago EV. Mahindra has launched the XUV400 and plans a family of electric SUVs under its 'Born Electric' line. MG Motor, Hyundai, and Kia are also pushing in.

VinFast's global expansion has been rapid but bumpy. The company listed on the Nasdaq in 2023, but its shares have been volatile. It has faced questions about profitability and has delayed some overseas plans. In India, it will need to convince buyers who are still wary of range anxiety and resale value.

Still, the shift to India-specific models could give VinFast an edge if it gets the formula right. The sources said the company is looking at local sourcing of batteries and components to keep costs down, though no final decisions have been made.

VinFast's India entry comes as the country's EV ecosystem matures. Charging networks are expanding, battery prices are falling, and consumer awareness is rising. But competition is fierce, and the market is price-sensitive.

The company has not said when the two India-specific EVs will hit the road. For now, the plans remain behind closed doors.