Vietnamese electric vehicle maker VinFast is sharpening its India strategy by prioritising expansion of its sales and service footprint, particularly into tier-3 and tier-4 cities, as it lines up new model launches and scales up investments across mobility segments.
“The EV industry today is concentrated in metros and tier-1 and tier-2 cities, but tier-3 and tier-4 markets offer significant potential,” said Tapan Kumar Ghosh, CEO, VinFast India. “Our strategy is two-pronged, strengthening our presence in larger cities while entering smaller markets as we roll out new products.”
VinFast plans to add 40 new four-wheeler showrooms this year to its existing network of 35 outlets across 27 cities. The company aims to double its showroom presence in metros while gradually expanding into smaller cities such as Vapi in Gujarat.
According to Ghosh, the rollout is guided by detailed city-wise mapping of EV demand as well as internal combustion engine (ICE) ownership, with a focus on converting existing ICE users to electric vehicles through soon to be announced targeted initiatives.
Operational Performance Focus
VinFast began dispatches in August 2025 and ranked fourth among the 16 EV OEMs in India as of December. Ghosh said the company is not chasing market share targets. “We are focused on building fundamentals product value, pricing, sales and service reach, charging access and overall cost of ownership,” he said.
Manufacturing is currently based on CKD kits, with localisation at around 10%, expected to rise as volumes scale.
The brand plans to introduce one new model every six months, with three launches lined up this year. The first will be a seven-seat Limo Green electric MPV, expected to be launched by April, to be offered in two versions, one for private buyers and another tailored for fleet operators.
The fleet-focused variant will also be used by Vin Group’s Global Smart Mobility ride hailing service that will launch in India soon. The next launch will be the VF5, which will become VinFast’s new entry point in India aimed at the Tata Nexon EV. A third, more premium SUV will be positioned above the VF7.
“We have a strong product pipeline in Vietnam, with models that can be adapted for India across multiple price levels,” Ghosh said.
Manufacturing and Investment
VinFast operates a manufacturing facility in Tamilnadu spread across 400 acres, with an installed yearly capacity of 50,000 units scalable up to 150,000 units.
It has committed $500 million to this plant. Additionally, it has earmarked another $500 million for a second, 500-acre facility for manufacturing electric buses and two-wheelers, taking its total land bank in India to around 900 acres.
Electric buses and two-wheelers are expected to launch by the second half of 2026. Two-wheelers will be retailed through separate showrooms, while electric bus sales are being handled by a dedicated sales team focused on government tenders.
Vinfast India future plans in numbers
New showrooms planned (2026): 40
City focus: Metros, Tier-1, Tier-2; entry into Tier-3 & Tier-4
Total new models planned: 3
Launch frequency: 1 model every 6 months
7-seat electric MPV (Limo Green): March–April
Entry SUV (VF5): H2 2026
Premium EV: By end-2026
Total committed investment: $1 billion
Land for Four-wheeler EV plant: 400 acres
Installed capacity: 50,000 units/year
Scalable capacity: 150,000 units/year
Localisation level: ~10%
Land for Buses & two-wheelers plant: 500 acres
Vinfast Total India land bank: ~900 acres