VinFast Building 2 New India-Specific Sub-10 Lakh Electric Cars

VinFast is changing its India strategy in a big way. The Vietnamese electric carmaker is reportedly developing two new EVs specifically for the Indian market, with at least one of them expected to target the highly competitive sub-$12,000 price bracket. In India, that translates to roughly Rs 10 lakh, although the eventual ex-showroom price could be different. According to a Reuters report citing multiple sources familiar with the company's plans, the two upcoming EVs are internally codenamed VF X and VF Y. Development is still at an early stage, and the plans could change before the cars reach production. VinFast has also declined to comment on the specific models. The move represents a significant change from VinFast's earlier India strategy. The company had initially planned to manufacture its existing VF 3, VF 6 and VF 7 models locally. However, it suspended those plans in July after concluding that production costs would make it difficult to achieve its targeted prices. The company currently sells the VF 6 and VF 7 in India through a CKD assembly operation at its Tamil Nadu plant. The new models, meanwhile, are being conceived from the ground up with Indian requirements and costs in mind. VinFast has already started discussions with Indian component suppliers, with the objective of involving them much earlier in the development process. This could help the company achieve higher localisation while keeping manufacturing costs under control. The most interesting of the two upcoming models is the VF X. Sources told Reuters that VinFast wants this model to be priced below $12,000, making it a potential Rs 10 lakh-ish electric car for India. The company reportedly wants the vehicle to sit between the tiny VF 3 and the larger VF 6 in terms of size. It is expected to be a compact vehicle offering more interior space than the VF 3 while remaining significantly more affordable than the VF 6. That would put it directly into one of India's most important EV segments, currently dominated by Tata Motors. Tata's affordable electric cars have established a strong presence in the market, making this a particularly difficult segment for a new entrant. However, a locally developed VinFast EV with aggressive pricing could give the company a much better chance of gaining volume. VinFast's commitment to India remains substantial. The company has pledged to invest around $2 billion in the country and wants its Tamil Nadu facility to eventually become a manufacturing hub for South Asia, the Middle East and Africa. The plant currently has an initial capacity of around 50,000 vehicles annually, with the ability to scale up to 150,000 units. VinFast has also received approval for the second phase of its factory expansion. The company entered the Indian passenger vehicle market in September 2025 and has reportedly sold around 10,000 vehicles so far. The upcoming India-specific EVs could therefore be crucial to VinFast's next phase here. Instead of simply bringing global models to India, the company now appears ready to design cars around Indian buyers, local suppliers and, most importantly, Indian price expectations.