After Factory Inauguration, VinFast Moves to Accelerate Into India

Fashion Value Chain

3 days ago

What makes a company cross continents to stake its future on a market where it has never sold a single vehicle For VinFast, an ambitious Vietnamese automaker, the pull came from India's promise: a vast population, rising incomes, and a government leaning hard into electric mobility. That promise has now been translated into steel beams, assembly lines, and a plan to put the brand in front of millions of potential drivers.
VinFast is working to make the infrastructure, the service, and the consumer experience strong enough to carry its brand for years to come
In August 2025, VinFast opened its first Indian manufacturing plant in Tamil Nadu. The facility is set to turn out 50,000 electric vehicles a year, with the option to triple production if demand rises. The ribbon-cutting came only weeks after pre-bookings began for the VF 6 and VF 7, two premium electric SUVs first shown at the Bharat Mobility Global Expo earlier this year.
Before deliveries start, the company has been staging its models in malls and other high-traffic public spaces across several cities. Shoppers stop, take photos, and ask questions. The aim is clear: let people witness the cars firthand before they commit. The entry plan unfolds in steps. First, spark curiosity. Then collect early reservations. Finally, reinforce the brand with an ecosystem, which include a factory, that signals a long-term presence.
India's electric vehicle (EV) market is still small enough that a new entrant can help shape its image. VinFast wants to build recognition before the competition intensifies. The company is betting that early visibility will lead to steady sales once production ramps up.
Why India Now
Urban areas are growing quickly. Government incentives are making EVs more affordable. Rising incomes are putting higher-end models within reach. Younger drivers, often more open to digital features, make up a large share of the population.
For a manufacturer, India's size is its own lure. Even a modest share of the market can mean tens of thousands of units sold each year. The competition remains in its early stages, so the focus is not on pulling buyers from rivals but on bringing first-time EV owners into the fold.
The Tamil Nadu plant offers more than domestic supply. It gives the company a base for exports to South Asia, the Middle East, and Africa. This widens its reach and allows it to serve multiple markets from a single hub.
The Playbook
The plan rests on three main parts. First, local manufacturing. Building in India cuts costs, meets domestic content rules, and allows for quicker response to changes in demand.
Second, market positioning. The VF 6 and VF 7 aim to combine aspirational design with prices that remain competitive against both electric and combustion-engine models. By year's end, VinFast expects to have 35 showrooms open in 27 cities, placing its products within reach of much of India's urban population.
Third, the ecosystem. The company is forging partnerships for charging capabilities, maintenance networks, and battery recycling. It is also stressing after-sales care, a key point for buyers new to EV ownership.
Showroom openings have drawn steady interest. Pre-bookings require only a small deposit, which lowers the barrier for potential buyers to express interest. Dealers say they are watching to see how many early reservations convert to completed sales.
For VinFast, India is not an isolated experiment. The company used a similar approach in Vietnam, building visibility, local production, and support services in parallel, which helped it become the best-selling brand in its home market. It is now applying that playbook in the Philippines and Indonesia, with India representing its largest expansion so far. If the approach gains traction here, it could guide future entries into other emerging economies where EV adoption is still in its early stages.
The next phase is about deepening the support network. That means more charging stations in major cities, training local technicians for EV maintenance, and building recycling systems for batteries. It also means making after-sales care smooth enough that first-time EV owners feel confident from day one.
For now, the lines in Tamil Nadu keep moving, and new showrooms keep welcoming visitors. In betting on India, VinFast is working to make the infrastructure, the service, and the consumer experience strong enough to carry its brand for years to come.