Vietnamese electric vehicle manufacturer VinFast is stepping up its localisation strategy in India by engaging with more than 300 domestic suppliers as it prepares to develop vehicles specifically for the Indian market.
The company has conducted supplier conferences in both India and Vietnam to identify opportunities for deeper local sourcing and build a stronger domestic supply chain for its upcoming electric vehicles.
India Specific EV Models in the Pipeline
VinFast said its future strategy will go beyond assembling models already available in its global portfolio. The company plans to design, develop and manufacture vehicles specifically for Indian consumers while achieving a significantly higher level of local content.
More than 300 Indian suppliers participated in recent discussions as VinFast explored partnerships and opportunities to increase domestic value addition.
Thoothukudi Plant to Support Expansion
VinFast’s existing models will continue to be assembled using completely knocked-down (CKD) kits at its manufacturing facility in Thoothukudi, Tamil Nadu. However, future models are expected to feature substantially greater local content as the company strengthens its Indian supply chain.
The company has also received investment approval for the second phase of its Thoothukudi plant expansion. The expansion forms part of VinFast’s $500 million investment plan and will include new manufacturing facilities for electric buses and two-wheelers.
The existing facility has an initial annual production capacity of 50,000 electric vehicles, with expansion plans aimed at taking capacity to 150,000 units.
VinFast Studies Indian Consumer Preferences
VinFast has been conducting market research and car clinics in India for models including the VF 6 and VF 7 to better understand local customer preferences.
The company said feedback gathered through these exercises has helped it make changes to its vehicles to better suit Indian consumers.
VinFast Gains EV Market Share
VinFast has also strengthened its position in India’s electric passenger vehicle market. According to Federation of Automobile Dealers Associations (FADA) data, the company registered 5,622 electric passenger vehicles during the first half of calendar year 2026.
This gave VinFast a 3.72 per cent share of India’s electric passenger vehicle market during the period, making it the fifth-largest electric passenger vehicle manufacturer by registrations.
Focus on Policy and Investment
VinFast is also engaging with government agencies on policy frameworks aimed at supporting greater production and investment by global electric vehicle manufacturers in India.
With increased local sourcing, India-specific vehicle development and expansion of its manufacturing operations, the company is looking to strengthen its presence in India’s growing electric vehicle market.
