Vietnam-Based Automaker Expands EV Presence in India with Focus on Tier 2 and 3 Cities

Vietnam-based electric vehicle manufacturer VinFast is strengthening its presence in India by focusing on product fundamentals, service reach, and localisation. The company has adopted a bottom-up growth strategy, prioritizing tier 2 and tier 3 cities before pursuing aggressive sales targets. VinFast has sold over 2,300 units in India within nine months of its entry, according to CEO Tapan Ghosh.

Key Highlights

• VinFast sold over 2300 EVs in India within nine months of entry
• The company aims for 75 showrooms and over 230 service workshops by year-end
• Investment of up to 2 billion dollars in Tamil Nadu manufacturing facility
• MPV7 launched alongside plans for Limo Green commercial EV and two-wheeler entry
• Charging network includes 300 stations with plans to expand via HPCL partnership

Growth Strategy and Market Expansion

VinFast aims to build a strong ownership ecosystem by adapting its supply chain and production to market demand. The company is not committing to fixed sales or plant utilization targets. Instead, it is focusing on building quality products, competitive pricing, and reliable customer service. VinFast is expanding its retail network in both metro and non-metro areas, with a special focus on aftersales support.

Currently, VinFast operates around 50 showrooms in India and plans to increase this number to 75 by the end of the year. The company also targets more than 230 service workshops, including dealer and third-party facilities, to support customers in smaller towns. VinFast's charging infrastructure, managed by its group-backed company V-Green, includes about 300 charging stations. The company is collaborating with HPCL to explore deploying charging facilities at 10,000 fuel stations across India.

Investments and Product Portfolio

VinFast has announced an investment of up to $2 billion in Thoothukudi, Tamil Nadu, where its manufacturing base is located. The plant has an annual capacity of 50,000 vehicles. The company currently offers three models in India: the VF6 and VF7 electric SUVs, and the newly launched MPV7, which targets personal buyers. Prices for these models range from ₹17 lakh to ₹28 lakh.

VinFast plans to enter the two-wheeler EV market in the second half of the year, with scooters as the initial focus. The company will establish a separate dealer network and showroom infrastructure for this segment. VinFast's scooter portfolio in Vietnam includes models such as Viper, Feliz, Feliz II, and Vero X. The company currently achieves 15 percent localisation in India and aims to increase this with scale, following the Completely Knocked Down (CKD) approach for upcoming launches.

Upcoming Launches and Future Plans

VinFast will soon introduce its commercial electric vehicle, Limo Green, which will be priced below the MPV7 and is intended for fleet operators. Limo Green shares its platform with the MPV7 and has already been dispatched to dealers. The company expects to announce its price soon. VinFast also indicated that two additional passenger vehicle launches could occur by the end of Q3 or the beginning of Q4, with SUVs remaining a major focus.

VinFast's approach is driven by rising electric vehicle adoption in tier 2 and tier 3 cities, where home charging and shorter commutes are common. While metros and tier 1 cities remain key markets, the company sees growing demand in smaller cities and towns.