VinFast is accelerating its India strategy with a clear focus on developing electric vehicles tailored specifically for the local market rather than relying solely on its existing global lineup. The Vietnamese EV maker has received approval for Phase 2 of its manufacturing facility in Thoothukudi, Tamil Nadu, a move that will expand production capacity and support deeper localisation efforts in the country. Upcoming models will be developed for local requirements with higher localisation, while the company will continue CKD assembly of the VF 6 and VF 7.
For upcoming models, VinFast’s approach is not simply to bring existing products from our global portfolio into the market, but to design, develop and manufacture products specifically for India, tailored to the needs of local customers, while also targeting a much higher level of localisation,” a VinFast spokesperson told Autocar Professional. This strategy reflects the company’s recognition of India’s unique road conditions, climate, pricing expectations and regulatory landscape, aiming to create vehicles that better suit Indian buyers while building a stronger domestic supply chain.
The Thoothukudi plant already supports initial assembly operations, and the approved Phase 2 expansion is expected to enable higher volumes and greater manufacturing depth. By combining continued CKD production of the VF 6 and VF 7 with dedicated India-specific models, VinFast is positioning itself to compete more effectively in one of the world’s fastest-growing EV markets. The emphasis on localisation is also expected to help the company navigate import duties, reduce costs over time and contribute to India’s broader goals of electric mobility and domestic manufactur
As VinFast advances these plans, the combination of market-specific product development and expanded local production capacity signals a long-term commitment to establishing a meaningful presence in India beyond simply importing or assembling global vehicles.