Vietnamese electric vehicle maker VinFast on Tuesday said it has not changed or suspended its production plans in India, the world’s third-largest automobile market. “For the models currently being sold in India, VinFast has not changed or suspended its production plans,” a VinFast representative said in a statement.
“VinFast will continue CKD assembly of these models at its Thoothukudi plant to serve the Indian market,” the company said.
VinFast currently has around 15% localisation in India and relies primarily on completely knocked-down (CKD) kits imported from Vietnam.
The company said India remains an important market in its long-term business and manufacturing strategy and that it plans to deepen localisation as it expands operations in the country.
VinFast said it has conducted market research and car clinics since entering India to understand local consumer preferences and has used the feedback to make adjustments to models including the VF 6 and VF 7.
For upcoming models, the company said it intends to design, develop and manufacture vehicles specifically for the Indian market rather than simply bring models from its global portfolio, while targeting a much higher level of localization.
As part of this strategy, VinFast said it has been engaging with local suppliers and recently organised supplier conferences in Vietnam and India, involving more than 300 Indian suppliers, to explore deeper cooperation and promote localisation.
The company also said it has received investment approval for Phase 2 of the expansion of its Thoothukudi plant, calling it an important step towards increasing manufacturing capacity and reaffirming its long-term investment commitment to India.
VinFast opened its first plant outside Vietnam in Tamil Nadu last year and had pledged to invest $2 billion in India as it sought to establish the country as a manufacturing base serving South Asia, the Middle East and Africa.
The company said it would continue working with the government to develop policy frameworks that support global EV manufacturers in expanding production and investment in India.
VinFast entered the Indian passenger EV market this year and has quickly emerged among the top five electric car brands by sales, helped by the launch of the VF 6 and VF 7.
The company also launched its MPV, the VF 7, earlier this year and plans to introduce two more EVs in India in 2026.
Tapan Ghosh, who was CEO of VinFast India at the time, told FE in July that localisation was an ongoing process.
“We are working with suppliers in India and Vietnam to build the ecosystem,” Ghosh had said.
“As production volumes increase, localisation will naturally improve because higher import dependence is not viable at scale,” he had said.
Ghosh has since taken over as CEO of VinFast’s Asia business.
The company’s comments come after a Reuters report said VinFast had paused plans to manufacture some models in India.