VinFast's core differentiator lies beyond the vehicle in India's EV race
aims to carve out a distinct space in India's crowded automarket by building a full-fledged ecosystem-spanning manufacturing, service, charging, and recycling-to foster long-term trust with customers Gurugram, Haryana, India.
The upstart EV maker VinFast recently unveiled its electric vehicle factory in Thoothukudi, Tamil Nadu, backed by a $500 million initial investment and aiming to produce 50,000 units per year in the first phase. This move isn't a tentative market trial. Instead, VinFast is digging roots deep into India's automotive landscape, blending manufacturing with nationwide dealer and service networks, charging infrastructure, and
battery recycling
initiatives. In a market where product launches often draw the spotlight, VinFast is placing equal emphasis on customer care and lasting relationships.
India's car market ranks third globally, dominated by a small handful of manufacturers. Over a dozen brands compete fiercely, yet some experts predict only half might survive the coming shake-out. Newcomers may feel compelled to compete for immediate sales through discounts and aggressive advertising. However, this focus can come at the expense of long-term service.
According to Capgemini's 2024 automotive snapshot, more than half of global car buyers are uncertain about their brand loyalty, with poor after-sales experiences being a key reason for considering a switch. Indian consumers, in particular, want reassurance that a brand will be there in the future to honor its commitments, not just present today to close a sale.
OEM departures in the past have deepened buyer caution in India. Car owners have faced difficulties obtaining spare parts or finding skilled technicians after brands exited the market. This has taught Indian consumers to carefully consider a manufacturer's long-term reliability and support before making a purchase. In India,
after-sales service
quality now outweighs even attractive pricing offers, making it critical to brand loyalty.
Surveys back this up. FADA's 2024 Customer Experience Index assigns 50 per cent weight to after-sales service-compared to 25 per cent each for sales and product. J.D. Power found that service initiation, vehicle pick-up, and service quality together account for nearly 75 per cent of overall customer satisfaction. These highlight a clear trend: for Indian buyers, past service experiences matter more than ads when choosing their next vehicles.
Recognizing these concerns, VinFast is taking a different approach by developing a comprehensive network that includes production, retail, and after-sales support. The Tamil Nadu plant is central to this vision. The factory could produce 50,000 units annually in the first phase, with the potential to triple that output if market demand increases, making it a major source of employment and economic growth for the region.
But VinFast's broader ecosystem is what truly sets it apart. The company has secured partnerships with multiple major dealer groups to roll out 32 dealerships across 27 cities, ensuring extensive sales, service, and spare parts availability. In 2025 alone, VinFast plans to have 35 fully operational dealerships.
In a key move, VinFast also works with partners like myTVS to establish 120 dedicated service centers nationwide, ensuring certified technicians, rapid diagnostics, and guaranteed availability of authentic spare parts. This workshop network will reflect the 24/7 service model that VinFast successfully implemented in Vietnam and elsewhere, emphasizing convenience through app-based appointments and a dedicated toll-free support line.
Charging infrastructure is another crucial part of VinFast's ecosystem strategy. By teaming up with RoadGrid, VinFast is tackling "range anxiety," offering drivers comprehensive aftersales charging solutions. Additionally, a collaboration with BatX Energies ensures responsible battery recycling, creating a sustainable loop for electric vehicle batteries from initial use to eventual reuse.
This holistic approach makes sense, considering India's rapid electric car adoption. In 2024, India sold nearly 100,000 EVs, a 20 per cent increase from the previous year, while total light vehicle sales reached 4.9 million. Despite the slowest passenger car sales growth in four years at just 4 per cent, EV demand remained strong, highlighting growing consumer interest in electric mobility. However, the limited number of public charging stations, currently only 29,277 as of July 2025 according to the Ministry of Power (MoP), highlights the need for a coordinated, manufacturer-supported charging infrastructure.
Ultimately, VinFast's investment in India hinges on trust, not initial excitement or promotional tactics. Its integrated approach to production, sales, and after-sales service positions it uniquely in a crowded marketplace. VinFast's effort in building a robust, self-contained automotive community marks a strategy that could secure long-term customer loyalty, proving that true success in India's EV market will belong to those who genuinely care for them afterward.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
16 minutes ago
- Economic Times
As 50% US tariff looms, 6 key steps that can safeguard Indian economy
Even as downside risks from Donald Trump's punitive tariffs on Indian exports to the US loom, the government may need to take some immediate to medium-term measures to protect the economy. Economists and industry chambers have suggested a bevy of steps that can protect exporters and provide them temporary relief. They have also suggested measures that can boost India's manufacturing competitiveness. From the Reserve Bank of India (RBI) chipping
The Print
30 minutes ago
- The Print
Will convey displeasure to US over Munir's nuclear threat from American soil—Centre tells House panel
MPs who attended the meeting said Misri told the Lok Sabha Committee on External Affairs headed by Congress MP Shashi Tharoor that New Delhi's position remains that BRICS was not an anti-Western grouping but should be seen instead as a 'non-Western grouping'. The committee, it is learnt, was told by Foreign Secretary Vikram Misri that US President Donald Trump's imposition of steep tariff on Indian exports was not just a response to New Delhi's purchase of Russian crude oil but could also be connected to its presence in BRICS. New Delhi: The Centre told a parliamentary committee Monday that New Delhi will convey to Washington DC its displeasure over Pakistan's army chief, Field Marshal Asim Munir, delivering nuclear threats from the soil of the United States, sources told ThePrint. Sources said Misri told the MPs that India would not tolerate such nuclear blackmail. ThePrint exclusively reported on 10 August that Munir, speaking at an event in the US, said, 'we are a nuclear nation, if we think we are going down, we'll take half the world down with us.' 'India's position will be conveyed to the US,' sources quoted Misri as having said. Misri is also learnt to have told the panel that the US's trade deficit with India may also have been a trigger for Trump, who first announced the imposition of 25 percent tariff on Indian exports to the US and later raised it to 50 percent citing the 'direct or indirect import of Russian oil'. The foreign secretary is learnt to have added that India will not cross certain 'red lines'—a reference to US's demand for India to open up its agriculture and dairy sectors—in its trade negotiations with Washington. 'The three issues that India believes could have acted as a trigger for Trump are purchase of Russian crude oil, trade deficit and India's presence in the BRICS multilateral grouping. India's position is very clear. Misri said New Delhi never considered BRICS to be an anti-Western bloc but believes it can be categorised, if at all, as a non-Western bloc,' an MP who was part of the meeting told ThePrint. Sources in the Indian establishment have previously argued that New Delhi's sale of processed Russian crude oil was necessitated by various European countries, who stopped importing from Moscow, becoming dependent on supplies from India. Apart from Misri, Commerce Secretary Sunil Barthwal was also present in the meeting that lasted over three hours. The officials told the MPs that the latest developments would not have any impact on India's 'friendship' with the US. 'Trade is just one aspect of India-US relations. There are many positives also,' one official is learnt to have told the committee. The officials added that India's trade relations, including defence purchases, would not be affected by Trump's announcements. In response to questions from MPs, they underlined that India is not trying to 'enhance' or recalibrate its relations with China or Russia in light of the US President's remarks and announcements. (Edited by Amrtansh Arora) Also Read: Proxy pushback: After Rajnath, now Gadkari & Venkaiah; BJP is running out of patience with Trump
Time of India
40 minutes ago
- Time of India
Pakistan Army chief Asim Munir threatens to target RIL's Jamnagar refinery
NEW DELHI: In his bellicose speech where he threatened to nuke India, Pakistan army chief Asim Munir put a target on Reliance Industries Ltd's refinery - the world's largest single-site refining complex - at Jamnagar in Gujarat in case of any future military conflict with New Delhi, indicating for the first time the intent to hit India's economic assets, especially oil installations. Speaking at a formal dinner at Tampa, Florida, in the US, Munir referred to a social media post with a Quranic verse along with the picture of RIL chairman Mukesh Ambani to say he authorised it during the recent conflict with India "to show them what we will do the next time", media reports quoting those present at the closed-door event said. While this set off chatter about Munir threatening the richest Indian, with a net worth of over $115 billion heading the oil-to-telecom-to-retail conglomerate, narration in the verse from Surah Al-Fil (The Elephant), the 105th chapter of the Quran, can be interpreted as an aerial attack in modern warfare. According to open source information, the verse refers to the 'Year of the Elephant, approximately (570 CE), when Abraha, the ruler of Yemen, led an army with elephants to destroy the Kaaba. Allah then sent flocks of birds carrying stones of baked clay, which struck and destroyed Abraha's army. India continuously evaluates military and other threats to its sensitive economic installations, especially those located in border states or considered within range of Pakistan air attacks. In the past, there have been separate reports from intelligence agencies about threats to such installations, particularly the RIL refinery, from Pakistan-based terror groups. Munir chose Ambani to make his threat because the RIL chief symbolises India's economic power and potential. Though there are other oil installations and assets that may be considered vulnerable, the sheer size of the Jamnagar complex makes it the showstopper in India's refining sector with an annual capacity of processing 33 million tonnes of crude, or 12% of India's total refining capacity. It is a major exporter of refined petroleum products.
