VinFast's-Indian

VinFast's Tamil Nadu Plant to Lead India’s EV Revolution with VF6 & VF7 Launch

 

VinFast, the Vietnamese electric vehicle (EV) carmaker is set to make a big splash into the Indian automotive space by launching two premium electric SUVs, the VF6 and VF7, in the festive season of 2025. This strategic move fills a void created by global players such as China's BYD and M&M (Mahindra & Mahindra) and intensifies competition in India's booming EV sector.

 

VinFast's Foray into India

 

At the 2025 Bharat Mobility Expo in New Delhi, the VF6 and VF7 models were unveiled by VinFast, which was debuting the models in India. To meet the rising electric vehicle demand the company is looking to cater to the desire to develop 30% of electric vehicles by 2030 in India. VinFast Auto India’s Deputy CEO Ashwin Patil confirmed both models would have some changes implemented to suit customer preferences and requirements in India.

 

Tamil Nadu Manufacturing Hub

 

In support of its operations in India, VinFast is proceeding to construct an integrated EV manufacturing facility in Thoothukudi, Tamil Nadu. Tamil Nadu Chief Minister M.K. Stalin laid the foundation stone of this facility in February 2024. The plant at the SIPCOT Industrial Complex occupies an area of 408 acres and requires an initial investment of ₹4,000 crore that will expand to ₹16,000 crore over time. Its first phase is expected to have an annual production capacity of up to 150,000 units and create about 3,500 jobs.

 

Strategic Market Positioning

 

In a calculated move, VinFast is entering its third biggest potential automotive market: India, where a gradual transformation towards electric mobility is underway. Electric vehicles sold in India represented less than 2.5 per cent of the more than 4 million vehicles sold in 2024. However, the Indian government’s goal to ramp up this share to 30 per cent by 2030 represents a massive growth opportunity for EV manufacturers. Introducing VF6 and VF7, VinFast hopes to give Indian carmakers something akin to premium mist electric SUVs with cutting-edge technology and environmentally superior commutation options.

 

Challenges and Considerations

 

Though the prospects are promising, VinFast is facing challenges in making its footprint in India. To allow the company to enter the market early before its manufacturing plant is operational, the company has lobbied for a reduction of the 100 per cent import tax on fully built EVs. This is another call from other global EV manufacturers such as Tesla and one that has been debated at the policymaker and domestic automaker levels. Besides, securing a share in India's market will depend as much on building a Transflective charging infrastructure as it will on charging at a competitive price. 

 

Future Prospects

 

VinFast has also announced it will roll out a nationwide network of dealers and consider investments in charging infrastructure to support its push into the Indian market. Not only is the company’s manufacturing unit in Tamil Nadu, India expected to cater for the domestic market but also to supply the export demands necessitating South Asia, the Middle East and Africa. India is strategically positioned to grow into a global hub for electric vehicle production by this positioning which will improve India's economic growth and technological advancement.

 

Conclusion

 

VinFast's planned launch of the VF6 and VF7 electric SUVs by the 2025 festive season marks a significant milestone in India's journey towards sustainable transportation. By investing in local manufacturing and aligning with national objectives, VinFast is poised to play a pivotal role in shaping the future of mobility in India. However, the company's success will largely depend on its ability to navigate regulatory landscapes, build the necessary infrastructure, and resonate with the preferences of Indian consumers.