VinFast Suspends Local Production of Three EV Models in India

VinFast suspended plans to locally manufacture its VF 3, VF 6, and VF 7 electric vehicle models in India. In a July memo, the Vietnamese automaker ordered suppliers to halt activities on these programs to reassess costs after failing to meet development targets for Indian-made parts and facing market share challenges in Europe and the United States.

The company clarified that this suspension applies to future localization efforts and not to current sales. VinFast will continue to assemble the VF 6 and VF 7 using Completely Knocked Down (CKD) kits at its Thoothukudi plant. Moving forward, the automaker intends to design and manufacture vehicles specifically for the Indian market to achieve higher localization levels rather than introducing global models unchanged.

To support this shift, VinFast has engaged with more than 300 Indian suppliers and received investment approval for a Phase 2 expansion of the Thoothukudi facility to increase capacity. The company entered the Indian market in September 2025 with a pledged $2 billion investment to establish a regional manufacturing base with an initial annual capacity of 50,000 cars.