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Vietnamese electric vehicle manufacturer VinFast is preparing to expand its business and manufacturing operations in India. The company plans to design, develop and manufacture electric vehicles specifically for the Indian market, taking into account the requirements and preferences of local customers.
VinFast has received investment approval for Phase 2 of its Thoothukudi manufacturing plant expansion in Tamil Nadu. However, the company has not disclosed the proposed investment amount, additional production capacity or timeline for the expansion.
According to a VinFast spokesperson, the company's strategy is not limited to bringing models from its global portfolio to India. Instead, upcoming models will be designed and developed specifically for Indian customers, with a greater focus on local content and localisation.
VinFast said it has conducted market studies and customer clinics to understand the requirements and expectations of Indian customers. The company has evaluated customer feedback for models such as the VF 6 and VF 7 and said the findings have helped it make product changes for the Indian market.
Currently, VinFast assembles the VF 6 and VF 7 electric SUVs at its Thoothukudi facility using completely knocked-down (CKD) kits. The company has clarified that it has neither changed nor suspended production plans for the two models. CKD assembly will continue to cater to demand in the Indian market. The clarification follows a Reuters report regarding the company's production plans in India.
VinFast is also working to strengthen its local supplier network in India. The company has organised supplier conferences in India and Vietnam, involving more than 300 Indian suppliers, to explore sourcing opportunities and increase localisation.
The company said that building a strong and sustainable supply chain is a key part of its long-term strategy in India. As part of this approach, VinFast is accelerating its operations in line with the 'Make in India' initiative.
VinFast has identified India as an important market for its long-term business and manufacturing strategy. According to the company, the initial response to its products has helped it consistently rank among the top five electric passenger vehicle brands in the country.
The company is also engaging with the government and relevant agencies on policy measures aimed at supporting further production and investment by global electric vehicle manufacturers in India.
VinFast said the approval for Phase 2 of the Thoothukudi plant expansion is an important step towards increasing its manufacturing capacity and strengthening its long-term presence in the Indian electric vehicle market.
