Vietnamese carmaker VinFast made quite a splash by showcasing its entire global line-up at the recently concluded Auto Expo 2025. With the construction of the Tamil Nadu plant on schedule despite recent floods, VinFast is targeting a festive season launch for the VF7 SUV and follow it up with more affordable models next year.
Speaking to Autocar India, Pham Sanh Chau, MD and CEO of the company's Asia operations, said, “We will position the VF7 first as a premium model in the mid-segment. For India, we have tried to bring in the highest model in the mid-premium space, as the target is the high-end customer in the middle class. After that, we will launch the VF6 and then come down to the VF3 next year.”
Top-down product plan for India
VinFast has confirmed that its first model for India will be the VF7, which is slated for launch around the festive season. And while VinFast has larger and more premium models such as the VF8 and VF9, which sell well in markets like North America and the Middle East, the VF7 will be its flagship offering in India.
The company plans to start with CKD operations and a 50,000-unit capacity, eventually scaling up to 1,50,000 units while expanding its portfolio with a top-down approach, from premium to mass-market segments.
"The 50,000-unit capacity can have multiple combinations of products, which are ready for right-hand drive, so, if required, it can support products like VF3, VF5 and e34, too," added Chau.
VinFast CKD operations and localisation efforts
“We plan to start with CKD operations; so that means the body shop, paint shop and assembly. And it’s not because we want to apply for any scheme, but simply because we want to reduce the BoM (Bill of Materials) costs and that reduces the tax too,” said Chau. The company says it has already begun working with local suppliers and plans to steadily grow the local content before the mass-market models start arriving next year.
VinFast is also exploring potential partners for cell and battery pack localisation. “If we are able to get the battery made here, we will automatically reach about 30 to 40 percent of localisation,” Chau added.
Creating brand awareness and setting up dealer network
In a tough market like India, creating a favourable brand image will be very crucial if the company is to find a solid footing. One may have the products, but without proper communication and network, it will be very difficult to make a mark (take Citroen, for example). In this regard, VinFast hopes to leverage the brand image of its parent company, VinGroup.
“It’s the biggest private conglomerate in Vietnam, involved in many diverse businesses. It’s like Tata in India. Also, on average, we have half a million people coming to Vietnam, so they experience the VinGroup name in our hotels, shopping malls and, of course, all the cars,” said Chau.
With the VF7 and VF6, the company has planned to start by focusing on urban centers where EV infrastructure is already present. It will then expand gradually as more affordable options arrive next year in segments where maximum traction takes place.
Chau explained: “At the start, we will focus on markets that are already buying EVs. For instance, we may even delay large markets like Punjab because they are not buying EVs right now. In terms of setup, the dealerships will be adequate and not unnecessarily extravagant. After all, customers know that the expense comes at a cost to them only, so our focus will be on high manpower and service quality.”
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