VinFast plans to design, develop and manufacture electric vehicles specifically for India as it expands its operations in the country. The Vietnamese EV maker has received investment approval for Phase 2 of its Thoothukudi plant in Tamil Nadu, although it has not disclosed the investment amount, additional production capacity or timeline for the expansion.

India-specific EVs to be developed for the Indian market

VinFast said its upcoming models will not be existing products adapted for India. The company plans to develop them specifically for local requirements and with a higher level of localisation.

"For upcoming models, VinFast's approach is not simply to bring existing products from our global portfolio into the market, but to design, develop and manufacture products specifically for India, tailored to the needs of local customers, while also targeting a much higher level of localisation," a VinFast spokesperson told a news publication.

The company said it has conducted market studies and customer clinics to understand the requirements of Indian customers. Feedback from these exercises has been used to make changes to products such as the VF6 and VF7 for the Indian market.

VF6, VF7 CKD assembly to continue

VinFast currently assembles the VF6 and VF7 from completely knocked down (CKD) kits at its Thoothukudi facility. The company clarified that it has neither changed nor suspended production plans for the two SUVs and will continue CKD assembly for India. The clarification follows a report by a local daily that raised questions about the carmaker's production plans for the two models.

VinFast said India remains part of its long-term business and manufacturing strategy. The company added that the initial response to its products has helped it consistently rank among the five largest electric passenger vehicle brands in India.

VinFast to expand local supplier base

The carmaker is working to increase sourcing from Indian suppliers. It has held supplier conferences in India and Vietnam involving more than 300 Indian suppliers to explore sourcing opportunities and increase localisation.

"Building a sustainable and resilient supply chain is the foundation of VinFast's long-term strategy in India. Accordingly, we are accelerating our operations in line with the 'Make in India' direction," the spokesperson said.

VinFast is also engaging with government agencies on policy measures aimed at supporting further production and investment by global EV manufacturers in India. The company described the approval for Phase 2 of the Thoothukudi plant as an important step towards expanding its manufacturing capacity.