VinFast has adjusted its India strategy, reducing its first-year sales target to 3,000 units and delaying the launch of its VF7 and VF6 electric SUVs due to distribution network challenges. Production at the Tamil Nadu facility is now slated for July 30, impacting booking and delivery timelines.
economictimes.indiatimes.com
VinFast has recalibrated its India sales plans ahead of the launch of its
electric SUVs
scheduled for the upcoming festive season. The Vietnamese company has pared its sales volume target for the first year of launch by a third to 3,000 units, even as it continues to evaluate the method of CKD (completely knocked down) assembly for the V7 and V6 models.
The company is also set to delay the launch of these models by a month due to an underdeveloped sales network, according to people aware of the company's plans.
Production at VinFast's facility at Thoothukudi in Tamil Nadu-originally scheduled to begin on June 30-has been pushed back to July 30. Consequently, bookings for the
VF7 and VF6 models will open in mid-July, with customer deliveries expected by mid-August.
An email sent to the company on Tuesday seeking comment remained unanswered till the time of going to press on Sunday.
"VinFast's full-fledged plans will unfold only next year when they introduce the VF 3, the company's affordable SUV. This year will mostly be about making an entry and testing the market," said one of the people cited above.
The delay is being attributed to a fledgling distribution strategy and lack of network readiness. After the
Bharat Mobility Show in January, VinFast appointed dealers for 40 locations. However, a majority of them have since withdrawn their letters of intent (LoIs), citing the company's inconsistent approach to distribution planning, pricing, and product positioning, the people said. As of now, only eight to ten dealers remain, they said.
"There was a lot of back and forth. They do not seem to have clarity on how many sales touchpoints to have, what price point to launch the models at, and how many units to sell. We couldn't commit investment with this lack of clarity," said a dealer principal who withdrew the LoI a couple of months ago.
"Since the auto show, VinFast hasn't done much on brand activation. Most are unaware of the brand in India," said another dealer who also opted out.
Ashish Jain, the executive in charge of network development, seems to have resigned, said some of the people cited earlier.
Jain did not respond to ET's message seeking comment and phone calls.
VinFast has built a 400-acre integrated EV manufacturing facility with an annual capacity of 50,000 units in Tamil Nadu. At the Bharat Mobility Global Expo 2025, the company showcased a range of models it plans to launch in India, including the VF 3, VF 7, VF 9, and VF e34 SUVs.
Electric car adoption in India continues to grow steadily. In May 2025, electric passenger vehicles accounted for 4.1% of the industry car sales, up from 3.5% in April and 2.6% in the same month last year, according to data from the Federation of Automobile Dealers Associations.
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