VinFast in India: A New EV Brand Rolls In
Electric car sales in India are growing fast, going from less than 2,000 in 2019 to over 1 lakh in 2024. But even now, electric cars make up just around 2.5% of all new car sales. That’s where VinFast steps in. On August 4, 2025, the Vietnamese EV company officially opened its first factory in India, Thoothukudi, Tamil Nadu.
VinFast has opened its first car factory with an investment of ₹4,000 crore (around $500 million) and plans to grow that to ₹16,000 crore (about $2 billion) over time. Their goal is to make 50,000 electric SUVs every year at first, and later increase it to 1.5 lakh cars. Bookings for their two electric models—the VF 6 and VF 7—started in mid-July with a refundable deposit of ₹21,000. To sell these cars, VinFast is opening 32 dealerships in 27 cities and hopes to have 35 stores by the end of the year. They’ve also partnered with myTVS for servicing and Tata Power to help build a charging network.
India is the third-largest car market in the world, so it’s a big deal for any car company. But most EVs sold here are still two- and three-wheelers like scooters and rickshaws. Only a small number of people are buying electric cars. That might change soon, though, because the Indian government wants 1 in 3 new vehicles sold by 2030 to be electric. VinFast knows this and has asked the government to lower the import tax on electric cars while they build more cars locally. As auto expert Vivek Gulia said, “If they get their act together, they can really succeed.”
VinFast isn’t just bringing in cars—they’re trying to build an entire EV system. That means making car parts in India, setting up a battery plant, and even working with other companies to grow the charging network. Still, it won’t be easy. Other car companies like Tata, Mahindra, and MG already have a strong presence. VinFast will need to win over Indian buyers with great prices, long battery life, and good service.
In the future, VinFast could also use India as a base to export cars to nearby countries like Sri Lanka, Mauritius, and Nepal. But for now, their biggest challenge is to prove they can deliver high-quality, reliable cars at a fair price. If their VF 6 and VF 7 offer the right mix of features and support, they might just become the next big thing in India’s EV story.
Thinking of going electric?
VinFast’s new EVs are up for pre-order now. You can book online or visit one of their new dealerships. Want to know when deliveries begin? Keep an eye out this August.
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