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VinFast car parked on a city street in Vietnam with a focus on urban vehicle visuals.(For reference only)
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NEW DELHI/HANOI — September 10, 2026
Vietnamese electric vehicle maker VinFast plans to develop two new models specifically for the Indian market, according to people familiar with the company’s plans. The move comes weeks after VinFast paused plans to manufacture three existing global models in India because it could not reduce production costs enough to meet its target prices.
The company is now considering vehicles designed from the start around Indian consumer needs and local supply chains. The two models are internally known as VF X and VF Y, although the plans remain under evaluation and could still change.
VinFast has started early discussions with Indian suppliers for the new vehicles, two people familiar with the matter said. The company is involving suppliers earlier in the development process to better control component prices and production costs.
VinFast declined to comment on the new models, saying details about future products would be announced at an appropriate time.
The strategy follows VinFast’s decision in July to suspend plans to manufacture the VF 3, VF 6 and VF 7 in India. The company continues to sell the VF 6 and VF 7 in the country, but they are currently brought in as kits from Vietnam and assembled at its Indian factory.
In August, VinFast executives traveled from Vietnam to meet about 200 Indian suppliers as the company reviewed its plans for the market. The discussions included ways to use components, manufacturing tools and capabilities already available in India rather than developing everything from scratch.
One of the new vehicles is expected to be a compact model positioned below the VF 6 crossover SUV in size. It would be larger than the two-door VF 3, with the company seeking to offer enough interior space for Indian buyers while keeping manufacturing costs low.
VinFast is targeting the VF X as an entry-level vehicle priced below $12,000, two people familiar with the plans said. That would put it close to the price of the VF 3 in Vietnam and make it significantly cheaper than VinFast’s current Indian models.
The VF 6 currently starts at about $19,000 in India, while the VF 7 starts at roughly $24,250. A vehicle priced below $12,000 would place VinFast in a much larger and more competitive part of India’s electric vehicle market.
The segment is led by Indian automakers including Tata Motors. Competing at lower prices could give VinFast access to a broader group of buyers, but the company would also face strong competition from established domestic manufacturers.
VinFast has committed to investing $2 billion in India and opened its first factory outside Vietnam there last year. The company aims to develop the facility into a regional manufacturing base serving markets in South Asia, the Middle East and Africa.
India has become an important part of VinFast’s international growth strategy after the company struggled to build sales at scale in the United States and Europe. Backed by Vietnamese conglomerate Vingroup, VinFast began selling vehicles in India in September 2025 and has since sold about 10,000 vehicles, according to the source article.
The company’s Indian assembly plant has an initial annual production capacity of 50,000 vehicles, with the potential to increase that to 150,000. VinFast has also received approval for investment in the second phase of the facility.
India’s electric vehicle market has expanded as fuel prices have risen, while the government has set a goal of increasing EVs to 30% of total car sales by 2030. VinFast is therefore seeking to use a lower-cost, locally developed vehicle to establish a stronger position in one of the world’s largest automobile markets.
