With $2 billion committed, VinFast is constructing an integrated play spanning cars, scooters, buses, ride-hailing and charging infrastructure.
29 Jan 2026 | 167 Views | By Kiran Murali
When VinFast rolled out its VF6 and VF7 electric SUVs in India last September, it marked more than just another global automaker testing the waters in a promising market. For the Vietnamese carmaker, India represents the cornerstone of a far more ambitious play—one that extends well beyond selling premium electric ...
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When VinFast rolled out its VF6 and VF7 electric SUVs in India last September, it marked more than just another global automaker testing the waters in a promising market. For the Vietnamese carmaker, India represents the cornerstone of a far more ambitious play—one that extends well beyond selling premium electric cars to a handful of early adopters.
The company is now preparing to enter ride-hailing through its sister concern GSM, launch India-specific electric scooters, supply buses to state transport undertakings, and build out a sprawling manufacturing ecosystem in Tamil Nadu. Backed by multi-billion-dollar commitments from parent Vingroup, VinFast is essentially attempting to construct an entire electric mobility value chain from scratch.
"India is not a market where success can be accelerated quickly," VinFast Asia CEO Pham Sanh Chau said. "Our strategy is built around listening, localisation and long-term investment rather than rapid expansion."
That patience, he suggested, stems from a clear-eyed reading of the market's complexity—and its potential. India's scale, talent base, and development trajectory make it a natural fit for Vingroup's global ambitions, Chau added.
Early Traction, Bigger Plans
The initial portfolio was designed to plant the flag rather than chase volumes. The VF6, priced from Rs 16.49 lakh, and the flagship VF7, starting at Rs 20.89 lakh, were meant to establish VinFast's technological credentials in the premium SUV space. A recent five-star Bharat NCAP rating for both models has helped on that front.
"In a market where safety is increasingly becoming a purchase driver, that certification is critical," said Tapan Ghosh, CEO of VinFast India. The company has sold over 1,000 units in its first few months—modest numbers in absolute terms, but enough to outpace several established global rivals in the monthly sales charts.
The real action, however, begins this year. VinFast plans to introduce three new electric models in 2026, starting with the "Limo Green," a seven-seater MPV expected within weeks. Positioned for both large families and commercial fleets, the MPV signals a deliberate shift towards practical, volume-oriented segments.
"These products are designed around real usage patterns and premiumness, not just specifications on paper," Ghosh said.
The company is also evaluating the sub-compact VF3 and VF5 for India. The latter, sitting between the VF3 and VF6 in the global lineup, could potentially take on mass-market offerings like the Tata Tiago EV or Punch EV—though final specifications for India are yet to be locked in.
The GSM Card
Perhaps the most distinctive element of VinFast's India strategy is its integration with Green and Smart Mobility (GSM), a global electric taxi operator also controlled by Vingroup Chairman Pham Nhat Vuong.
GSM is preparing to enter India's ride-hailing market this year, and it will run exclusively on VinFast vehicles. The arrangement gives VinFast a captive customer base—a guaranteed floor for its manufacturing operations even as retail demand builds.
"We are going to launch GSM in India. They will be using only VinFast vehicles," Chau confirmed.
The model goes beyond simply deploying cars. In markets like Jakarta, GSM has trained thousands of drivers to function as brand ambassadors, educating passengers about electric vehicles during their rides. A similar approach is planned for India. GSM already operates in Vietnam, Malaysia, and the Philippines across multiple vehicle segments, including electric two-wheelers—a format it may replicate here.
Two Wheels and Buses
While cars grab the headlines, VinFast's most aggressive volume play may come from two-wheelers and buses.
The company has announced plans to launch "India-specific electric scooters" in the second half of 2026. Unlike the global models sold in other South Asian markets, these scooters are expected to be modified for Indian road conditions and commuting patterns. The scale of ambition is evident in the production planning: VinFast is building a dedicated two-wheeler line at its Tamil Nadu facility with a long-term target of one million units annually.
Simultaneously, VinFast is targeting public transport. Electric buses are slated for launch by mid-2025, with the company already in discussions with State Transport Undertakings in Maharashtra, Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Telangana. The lineup—ranging from 6 to 12 metres with a range of up to 260 km—positions VinFast to tap into PM E-Drive incentives aimed at decarbonising urban transit.
The Manufacturing Backbone
None of this works without serious manufacturing muscle, and VinFast has committed $2 billion (approximately Rs 16,000 crore) to building it.
The Thoothukudi facility in Tamil Nadu, currently assembling passenger vehicles at an annual capacity of 50,000 units, is being scaled up to 150,000 units. A recent MoU with the state government adds 200 hectares of adjacent land for dedicated bus and scooter production lines.
"The proposed expansion will enable us to broaden our product lineup—from electric cars to buses and e-scooters—allowing us to meet a wider range of customer needs," Chau said.
The bigger challenge lies in localisation. Currently, VinFast's local content hovers around 10-15%, largely because vehicles arrive as CKD kits. The company has set a near-term target of 40% localisation, with battery sourcing seen as the critical unlock.
VinFast is in advanced discussions with local battery manufacturers, including the Tata-Gotion joint venture. "Once we have batteries, localisation will increase tremendously," Chau said. In a price-sensitive market, that cost reduction could prove decisive.
Building the Ecosystem
To support the product onslaught, VinFast is doubling its retail footprint from 35 dealerships to 70 this year, with expansion focused not just on metros but on Tier 2 and Tier 3 cities where EV interest is rising.
The company is also rolling out its V-Green charging network, offering new buyers complimentary charging for a limited period—a lever to ease range anxiety and lower perceived ownership costs.
VinFast's India playbook is unconventional. Rather than focusing on a single segment and scaling gradually, the company is simultaneously attacking passenger cars, two-wheelers, buses, and ride-hailing. It is betting that building an integrated ecosystem—vehicles, fleet operations, charging infrastructure—will create compounding advantages over time.
Whether that bet pays off will depend on execution, localisation, and how quickly the broader EV market matures. But VinFast, it appears, is prepared to wait.