Vietnamese automaker VinFast is gearing up to make a significant entry into India’s booming electric two-wheeler segment, with plans to introduce locally-developed electric scooters in the latter half of 2026. The company has outlined ambitious manufacturing goals that could reshape its presence in one of the world’s fastest-growing EV markets.
Strategic Entry into India’s E-Scooter Space
VinFast’s foray into Indian two-wheelers marks a strategic expansion beyond its four-wheel offerings. According to Pham Sanh Chau, CEO of VinFast Asia, the company is setting up dedicated manufacturing infrastructure at its Tamil Nadu facility specifically for electric scooter production.
Unlike many manufacturers who adapt global products for local markets, VinFast is taking a ground-up approach. The upcoming scooters are being engineered from scratch with Indian consumers in mind, following comprehensive market analysis conducted over the past twelve months.
Massive Production Capacity in the Pipeline
The scale of VinFast’s two-wheeler ambitions far exceeds its passenger vehicle operations in India. While the company’s car manufacturing plant is being scaled to produce 150,000 units annually, the electric scooter division targets an eventual capacity of one million units. However, the Vietnamese manufacturer has not yet disclosed the investment figures or timeline required to reach this production milestone.
Localization at the Core
To compete effectively in India’s price-sensitive market, VinFast is prioritizing component localization. The company has already initiated conversations with Indian suppliers for critical parts, including battery systems. This localization strategy aims to reduce costs and enhance the competitiveness of its products against established players like Ola Electric, Ather Energy, and TVS Motor Company.
VinFast is also exploring opportunities under government incentive schemes, including the Production Linked Incentive (PLI) program and PM E-DRIVE initiative, which could provide crucial financial support depending on investment scale and timing.
Market-First Product Development
The company’s research-driven approach focuses on understanding real-world Indian conditions. VinFast’s product development team has studied local commuting patterns, charging infrastructure availability, average travel distances, and pricing expectations. This suggests the upcoming electric scooters will be positioned as accessible, high-volume products rather than premium offerings.
What This Means for Indian Consumers
VinFast’s entry adds another international player to India’s increasingly competitive electric scooter market. With the company’s commitment to India-specific development and local manufacturing, consumers can expect products tailored to domestic needs rather than adapted international models.
The second half of 2026 launch timeline gives VinFast approximately 18 months to finalize product development, establish supply chains, and build out manufacturing capabilities—an aggressive but achievable schedule for an automaker already operating in the country.
As India pushes toward greater electric vehicle adoption and the two-wheeler segment continues dominating EV sales, VinFast’s substantial capacity plans signal strong confidence in the market’s long-term potential.
