VinFast plans 2 new EVs for India after shelving 3 models: What buyers can expect next

VinFast plans to develop two new electric vehicles for the Indian market. The move comes weeks after the Vietnamese automaker suspended plans to manufacture some of its global models in the country, news agency Reuters reported, citing sources.

The decision marks a shift from VinFast's earlier approach of adapting existing vehicles for India, a market the loss-making carmaker sees as a growth avenue after struggling to scale up in the United States and Europe. VinFast has pledged to invest $2 billion in India, where it opened its first factory outside Vietnam last year, and wants to build the operation into a regional manufacturing base for South Asia, the Middle East and Africa.

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Supplier talks begin for VF X and VF Y

VinFast has begun initial discussions with suppliers in India for the two new models, internally codenamed VF X and VF Y, two of the sources told Reuters. The talks are still at an early stage, and the plans are still being evaluated and could change, the sources said. All the sources declined to be identified because the discussions are private.

A VinFast spokesperson declined to comment and said information about new products would be announced at the appropriate time.

Strategy reset after cost concerns hit earlier plans

The company changed course after high costs disrupted its earlier manufacturing plans. In July, VinFast suspended plans to manufacture three of its current global models, the VF 3, VF 6 and VF 7, in India after deciding it would not be able to cut costs enough to sell them at its target prices, Reuters reported last week.

It currently sells the VF 6 and VF 7 in India by importing them as kits from Vietnam and assembling them at its India factory. The company has said it will continue assembling these two models.

In August, VinFast executives flew in from Vietnam to meet about 200 Indian suppliers to discuss the company’s plans for the world’s third-largest car market, two of the sources said. One source said VinFast had decided to involve Indian suppliers from the outset so it could address pricing and cost issues early in the development process and avoid a repeat of the same problems.

Affordable compact EV likely to target entry-level segment 

According to one of the sources, VinFast wants to create a compact and affordable model that is smaller than its current VF 6 crossover SUV but slightly bigger than its two-door SUV, the VF 3, to suit local consumer preference for a spacious vehicle. The design is still being refined, the source said, with one of the main challenges being to balance the vehicle’s size with its cost.

Two of the sources said VinFast is targeting the VF X as an entry-level offering for India and wants to price it below $12,000. That is roughly what it charges for the VF 3 in Vietnam, one of its more affordable models there. In India, plans to locally manufacture the VF 3 were among those that were paused. The VF 6 currently sold in India is priced at about $19,000 for the base model, while the VF 7 starts at $24,250.

India EV market offers scale but remains competitive

A car priced below $12,000 would place VinFast in one of the biggest EV segments in India, which is dominated by Tata Motors, though it would also be among the hardest to enter. EV sales in India have been rising since the Iran war pushed up petrol prices. Electric models now account for more than 7% of total car sales, and the government wants that figure to rise to 30% by 2030.

A sixth source aware of VinFast’s local plans said the company wants to use components and tools already available with suppliers in India instead of building everything from scratch.

VinFast eyes India as regional manufacturing base

Backed by Vingroup, Vietnam’s largest conglomerate, VinFast began selling cars in India in September 2025 and has so far retailed about 10,000 vehicles. It also has broader ambitions in India in real estate, education and healthcare.

VinFast’s assembly plant in India has an initial production capacity of 50,000 cars a year and can be scaled up to 150,000. The company has said it has received investment approval for the plant’s second-phase expansion. The plan to develop two new EVs for India underlines its effort to reset its local strategy after shelving domestic manufacture of some existing global models.