VinFast to Pivot Strategy, Develop 2 New EVs for India: Reuters

Vietnamese electric carmaker VinFast is planning a major strategic shift for India, initiating development on two brand-new electric vehicles tailored specifically for the Indian market, according to a report by Reuters.

The turnaround follows the company’s recent decision to halt domestic production plans for three of its international vehicles after struggling to meet strict cost benchmarks.

According to Reuters, VinFast in July suspended plans to manufacture three of its current global models, the VF 3, VF 6 and VF 7, in India after it determined it would not ​be able to bring costs down enough to sell at the prices it had targeted.

The upcoming models (internally designated as the VF X and VF Y) represent a move away from simply adapting VinFast’s existing portfolio for India. The company, which has encountered hurdles scaling operations in North America and Europe, views India as vital for long-term expansion. One of the new models is set to be placed between the VF 6 crossover and the VF 3 two-door SUV.

The VF X will target a $12,000 price, around Rs 11.48 lakh at the time of writing, positioning it near the Tata Nexon.ev as its closest electric SUV rival. 

Backed by parent firm Vingroup, the automaker has earmarked $2 billion for its Indian footprint. Its local assembly facility—the brand’s first operational outpost beyond Vietnamese borders—presently holds an annual volume of 50,000 units, with cleared expansion plans allowing for a scale-up to 150,000 vehicles as it seeks to transform the site into an export hub serving South Asia, Africa, and the Middle East.

While VinFast noted that official announcements regarding upcoming models will arrive at the "appropriate time," sources confirmed to Reuters that specifications and project directions remain subject to change as platform evaluations continue.