VinFast to Develop Two New EVs for India, ET Auto Reports

VinFast plans to develop two new electric vehicles for the Indian market, according to a report by ET Auto. The news, published on September 10, 2026, signals the Vietnamese automaker's intent to widen its India portfolio beyond its current offerings.

The report did not specify the segment, price range, or launch timeline for the two EVs. It also did not say whether they would be made at VinFast's planned factory in Tamil Nadu or imported.

VinFast has been talking up India for a while. The company broke ground on a manufacturing facility in Thoothukudi, Tamil Nadu, earlier this year. That plant is expected to produce electric SUVs and scooters, with an eye on local sales and exports.

India's EV market is small but growing. Electric cars made up just over 2% of total passenger vehicle sales in 2025, according to industry estimates. The government wants that share to hit 30% by 2030. Several states offer road-tax waivers and subsidies to buyers.

VinFast isn't the only newcomer. MG Motor, Tata Motors, and Mahindra already sell EVs here. Hyundai and Kia have plans. Tesla has been in talks with the government about a factory. The competition is heating up.

For VinFast, India is a bet on volume. The company has struggled in some markets, including the US, where its sales have been slow. India's lower price points and growing demand for electric mobility could offer a better fit.

But building two new EVs from scratch for India takes time and money. VinFast has not said how much it will invest in the development. It also hasn't named suppliers or partners.

The ET Auto report offers few details. That's typical for early-stage product plans. Automakers often keep quiet until closer to launch.

What's clear is that VinFast sees India as a long-term play. The company has said it wants to sell 50,000 EVs a year in India eventually. That's ambitious. For now, the two new models are just a plan on paper.

Local manufacturing will be key. High import duties make fully imported EVs expensive. VinFast's Tamil Nadu plant, once operational, could help it price competitively. The plant is expected to start production in 2026, though timelines have slipped before.

Battery costs are another factor. India doesn't have large-scale lithium-ion cell manufacturing yet. Most cells are imported from China. That adds to the cost of any EV made here.

VinFast's move comes as India pushes for cleaner transport. The government's FAME scheme has subsidized electric buses and two-wheelers. For cars, the incentives are smaller. Still, several states offer their own benefits.

The two new EVs could target the mass market. VinFast's existing models, like the VF 6 and VF 7, are mid-size SUVs. In India, the sweet spot is smaller and cheaper. A compact SUV or hatchback would make more sense.

But that's speculation. The company hasn't confirmed anything beyond the ET Auto report.

VinFast will need to localize heavily to keep prices down. That means sourcing parts locally, setting up a supply chain, and training workers. It's a long road.

For now, the news is just a signal. VinFast is serious about India. Two new EVs are in the works. The details will come later.