At the recently concluded Auto Expo 2025, Vietnamese automaker Vinfast made a significant impact by showcasing its entire global lineup. Despite recent floods, construction of its Tamil Nadu manufacturing plant remains on schedule. The company is targeting a festive season launch for its VF7 SUV, followed by more affordable models in 2026.
India Launch Strategy: Premium First, Mass Market Next
Speaking to Autocar India, Pham Sanh Chau, Managing Director and CEO of Vinfast’s Asia operations, outlined the company’s market strategy.
“We will first position the VF7 as a premium mid-segment model, catering to the high-end middle-class customer. After establishing the VF7, we will introduce the VF6, and by next year, the VF3,” Chau stated.
Vinfast has opted for a top-down product strategy in India, introducing premium models first before moving into more affordable segments. While its global lineup includes the larger VF8 and VF9 SUVs—popular in North America and the Middle East—the VF7 will serve as Vinfast’s flagship model for India.
CKD Operations and Localization Efforts
Vinfast’s initial operations in India will follow the CKD (Completely Knocked Down) model, with a production capacity of 50,000 units, scalable up to 150,000 units. The facility will include a body shop, paint shop, and assembly line.
“This isn’t about qualifying for any government scheme; it’s about reducing the Bill of Materials (BoM) cost, which in turn lowers taxes,” Chau explained. The company has already started collaborating with local suppliers and aims to increase localization before expanding into the mass-market segment next year.
Battery pack localization is another key focus area. “If we can manufacture batteries locally, we can achieve 30-40% localization,” he added.
Building Brand Awareness and a Dealer Network
Establishing a strong brand presence will be critical for Vinfast in the competitive Indian market. The company aims to leverage the reputation of its parent firm, Vingroup, which is Vietnam’s largest private conglomerate.
“Vingroup is involved in multiple industries, much like Tata in India. We also receive half a million visitors annually in Vietnam, where they experience our brand through hotels, shopping malls, and of course, our cars,” Chau noted.
Targeting Urban Centers First
Initially, Vinfast will focus on urban centers with established EV infrastructure. The VF7 and VF6 will cater to these markets before the company expands into mass-market segments in 2026.
“At the outset, we will prioritize cities where EV adoption is already happening. Some larger markets, like Punjab, may be delayed as EV demand there is still low. Our dealership strategy will emphasize service quality over extravagant showrooms, as we understand that excessive overhead costs ultimately impact customers,” Chau elaborated.
Conclusion
With an ambitious roadmap, localized production efforts, and a structured market entry plan, Vinfast aims to establish itself as a formidable player in India’s growing EV segment. The festive season launch of the VF7 will mark the company’s entry, setting the stage for a wider range of affordable electric vehicles in 2026.
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