VinFast steps up India localisation push, engages over 300 suppliers

EV maker plans India-specific models with higher local content; gets approval for Phase 2 expansion of its Thoothukudi plant under a $500 million investment plan

Vietnamese electric vehicle maker VinFast is stepping up its localisation push in India, engaging with more than 300 domestic suppliers as it prepares to develop India-specific models with significantly higher local content.

 

The company has held a series of supplier conferences in India and Vietnam as it looks to deepen local sourcing and build a domestic supply chain for its future vehicles.

 

“For upcoming models, VinFast’s approach is not simply to bring existing products from our global portfolio into the market, but to design, develop and manufacture products specifically for India, tailored to the needs of local customers, while also targeting a much higher level of localisation,” a VinFast representative said.

  

The company said more than 300 Indian suppliers had participated in its recent supplier conferences as it explored opportunities for deeper cooperation and localisation.

 

The move marks the next phase of VinFast’s manufacturing strategy in India. Its existing models will continue to be assembled from completely knocked-down (CKD) kits at its Thoothukudi plant, while upcoming models are expected to have substantially higher local content.

 

VinFast has also received investment approval for Phase 2 of its Thoothukudi plant expansion. The second phase is part of a $500 million investment plan and includes new production facilities for electric buses and two-wheelers. Its existing plant has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.

 

VinFast has been conducting market research and car clinics in India, including for the VF 6 and VF 7, to understand customer preferences and adapt its products for the domestic market. It said feedback from these exercises had helped it make changes to products for Indian customers.

 

VinFast has also been gaining ground in India's electric passenger vehicle market. It registered 5,622 vehicles in the first half of calendar year 2026, accounting for 3.72 per cent of the electric passenger vehicle market during the period, according to Federation of Automobile Dealers Associations (FADA) data. VinFast was the fifth-largest electric PV maker by registrations during the period.

 

The company said it was also working with government agencies on policy frameworks to support further production and investment by global EV manufacturers in India.