VinFast Plans 2 New Electric Vehicles for Sub-INR 10 Lakh India Launch: Report

Vietnamese electric vehicle giant VinFast is reportedly embarking on a significant strategic overhaul for the Indian market, with plans to introduce two new, India-specific electric vehicles. This strategic pivot aims to better cater to India's price-sensitive audience, with one of the models expected to break the crucial sub-Rs 10 lakh price barrier.

Sources familiar with the development indicate that these new EVs are currently in their early development stages, carrying internal codenames VF X and VF Y. The move signals a departure from VinFast's earlier approach, which involved adapting its existing global portfolio for local production in India. Porsche Cayenne Electric Launch on September 30 in India; Check Expected Price Range, Specifications.

A Strategic Reassessment for India

The shift in strategy follows VinFast's decision in July 2026 to suspend plans for deeper localisation of its VF 3, VF 6, and VF 7 models in India. The company reportedly faced difficulties in achieving the necessary cost efficiencies to meet its targeted pricing for these models in the Indian market. Despite this, VinFast continues to assemble the VF 6 and VF 7 electric SUVs at its Thoothukudi plant in Tamil Nadu using completely knocked-down (CKD) kits, a practice that began after their India launch in September 2025.

Targeting the Mass Market with VF X

The more prominent of the two upcoming models, the VF X, is reportedly designed as a compact EV. It is intended to be positioned below the existing VF 6 in terms of size but will offer more interior space than the tiny VF 3. VinFast's objective for the VF X is to create a relatively spacious yet affordable electric vehicle that aligns with Indian customer preferences without incurring excessive manufacturing costs.

Crucially, reports suggest VinFast is aiming for a price point under $12,000 for the VF X, which translates to approximately Rs 10 lakh at current exchange rates. This aggressive pricing would place the VF X directly into one of India's most competitive EV segments, currently dominated by players like Tata Motors. Details regarding the second model, the VF Y, remain limited at this nascent stage of development.

VinFast has initiated preliminary discussions with Indian suppliers for both the VF X and VF Y, though these plans are still under evaluation and subject to change. A VinFast spokesperson declined to comment on the new products, stating that information would be officially announced at "the appropriate time." JSW Group and Volkswagen Sign MoU for India Joint Venture to Expand Skoda and VW Car Business.

Continued Investment and Presence

VinFast's commitment to the Indian market remains strong, underscored by its pledge to invest $2 billion in the country. The Thoothukudi facility, inaugurated in August 2025 as the company's first manufacturing plant outside Vietnam, has an initial annual production capacity of 50,000 units, scalable to 150,000. The plant has already produced over 10,000 electric vehicles by May 2026, and VinFast has reportedly sold a similar number of vehicles in India since its entry. This robust infrastructure positions the company to leverage India not only as a domestic market but also as a potential export hub for South Asia, the Middle East, and Africa.

Disclaimer: AI tools assisted in compiling the foundational data and research for this report. The final content was reviewed, edited and verified by human editors at LatestLY.

(The above story first appeared on LatestLY on Sep 12, 2026 03:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).