- Vietnamese electric vehicle maker VinFast is stepping up its localisation push in India, engaging with more than 300 domestic suppliers as it prepares to develop India-specific models with significantly higher local content.
- VinFast has held a series of supplier conferences in India and Vietnam to deepen local sourcing and build a domestic supply chain.
- A VinFast representative stated that for upcoming models, the company will design, develop, and manufacture products specifically for India, tailored to local customers, while targeting a much higher level of localisation.
- VinFast's existing models will continue to be assembled from completely knocked-down (CKD) kits at its Thoothukudi plant, while upcoming models are expected to have substantially higher local content.
- VinFast has received investment approval for Phase 2 of its Thoothukudi plant expansion, part of a $500 million investment plan, including new production facilities for electric buses and two-wheelers.
- VinFast's existing plant has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
- VinFast has been conducting market research and car clinics in India, including for the VF 6 and VF 7, to understand customer preferences and adapt products; feedback has led to product changes.
- VinFast registered 5,622 vehicles in the first half of calendar year 2026, accounting for 3.72 per cent of the electric passenger vehicle market, making it the fifth-largest electric PV maker, according to FADA data.
VinFast is ramping up its localisation strategy in India, engaging over 300 domestic suppliers to develop models specifically for the Indian market. This initiative aims to enhance local content significantly, moving beyond merely assembling existing global products.1
The company has conducted a series of supplier conferences in both India and Vietnam, focusing on building a robust domestic supply chain. A VinFast representative stated, “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.”23
This strategy marks a pivotal phase in VinFast's manufacturing approach in India. While existing models will continue to be assembled from completely knocked-down (CKD) kits at its Thoothukudi plant, future models are expected to feature a much higher level of localisation.4
VinFast is also expanding its Thoothukudi plant as part of a $500 million investment plan, which includes new production facilities for electric buses and two-wheelers. The plant's capacity is set to increase from 50,000 to 150,000 electric vehicles annually.56
In the first half of 2026, VinFast registered 5,622 vehicles, capturing 3.72% of the electric passenger vehicle market, according to the Federation of Automobile Dealers Associations (FADA) data, making it the fifth-largest electric PV maker by registrations during this period.910
“The company plans to design, develop, and manufacture products specifically for India, moving beyond CKD assembly at its Thoothukudi plant. Phase 2 expansion, part of a $500 million investment, will add production for electric buses and two-wheelers, while VinFast's existing plant capacity grows from 50,000 to 150,000 units.”
