Vietnamese electric vehicle maker VinFast is preparing two new EVs specifically for the Indian market, marking a strategic shift after the company recently put plans to manufacture three existing global models in India on hold.
According to Reuters, the automaker has started preliminary discussions with Indian suppliers for two new vehicles, internally identified as VF X and VF Y. The development comes as VinFast looks to strengthen its position in India and use the country as a potential manufacturing hub for other markets.
The company has committed to investing around $2 billion in India and opened its first manufacturing facility outside Vietnam last year. VinFast aims to eventually use the Indian plant as a regional production base serving markets across South Asia, the Middle East and Africa.
VinFast Starts Discussions With Indian Suppliers
Sources familiar with the matter told Reuters that VinFast has initiated early-stage talks with component suppliers for the upcoming VF X and VF Y.
However, the plans are still being evaluated and could change as development progresses. The sources spoke on condition of anonymity because the discussions are private.
VinFast has not officially confirmed details about the two vehicles. A company spokesperson said new product information would be disclosed at the appropriate time.
Why VinFast Changed Its Earlier India Strategy
The move comes after VinFast encountered difficulties in making its earlier India manufacturing plans financially viable.
In July, the company reportedly suspended plans to manufacture the VF 3, VF 6 and VF 7 locally after concluding that it would be difficult to reduce production costs enough to meet its targeted pricing.
VinFast currently sells the VF 6 and VF 7 in India by importing vehicle kits from Vietnam and assembling them at its Indian facility. The company intends to continue assembling both models locally.
The rethink appears to have prompted VinFast to involve Indian suppliers much earlier in the development cycle of its next-generation vehicles.
In August, executives from Vietnam reportedly met around 200 Indian suppliers to discuss the company’s plans for the Indian market. One source said greater local supplier involvement from the beginning could help VinFast control costs and address pricing challenges before production begins.
New Compact EV Could Target Affordable Buyers
One of the upcoming vehicles could be positioned as a small and relatively affordable electric car aimed at Indian consumers.
According to one source, VinFast is considering a model that would be smaller than the current VF 6 crossover but somewhat larger than the two-door VF 3. The objective is to offer a compact vehicle while retaining enough interior space to appeal to Indian buyers.
The design is reportedly still being worked on, with engineers facing the challenge of balancing vehicle dimensions, practicality and affordability.
Two sources said VinFast is considering positioning the VF X as an entry-level EV in India, with a potential price below $12,000.
That would put the model at a significantly lower price point than VinFast’s current Indian offerings. The VF 3 is priced at around $12,000 in Vietnam, while the VF 6 in India starts at approximately $19,000 and the VF 7 at about $24,250.
India’s EV Market Offers Big Opportunity
An EV priced below $12,000 could give VinFast access to one of India’s largest and most competitive electric-car segments.
Tata Motors currently dominates much of India’s affordable EV market, making the segment attractive but difficult for new entrants to crack.
India’s electric passenger vehicle market has been expanding, with EVs now accounting for more than 7% of overall car sales. The government has set an ambitious target of increasing EV penetration to 30% by 2030.
VinFast is also looking at ways to keep development and production costs under control. A source familiar with the company’s plans said it wants to make greater use of existing components, manufacturing tools and supplier capabilities available in India, rather than developing everything from the ground up.
VinFast Wants India to Become a Regional EV Hub
VinFast, backed by Vietnamese conglomerate Vingroup, entered India’s passenger vehicle market in September 2025. Since then, the company has reportedly sold around 10,000 vehicles in the country.
Its ambitions in India extend beyond automobiles, with the wider group also having interests in areas such as real estate, education and healthcare.
The company’s Indian vehicle assembly facility currently has an initial production capacity of approximately 50,000 vehicles annually. That capacity can eventually be increased to around 150,000 units per year.
VinFast has also received investment approval for the second phase of expansion at the facility.
What the New EV Plans Mean for Indian Buyers
The proposed VF X and VF Y suggest that VinFast is attempting to rethink its India strategy after facing cost-related hurdles with its existing global models.
By designing vehicles with Indian consumer preferences, local sourcing and competitive pricing in mind from the beginning, the automaker could potentially offer products better suited to the country’s fast-growing EV market.
For Indian buyers, the key developments to watch will be the size, range, features, pricing and launch timeline of the two upcoming EVs. If VinFast succeeds in developing a genuinely affordable compact electric vehicle, it could intensify competition in India’s rapidly expanding mass-market EV segment.