The producer has requested suppliers to “maintain all actions” on three programmes, together with a two-door SUV known as VF3 – anticipated to be its most aggressive mannequin out there – and the VF6 and VF7 SUVs, which it imports as kits from Vietnam and assembles within the nation.
Additionally learn: VinFast bets big on India with $500 million EV push, eyes global exports via new Tamil Nadu factory
India enlargement setback
The suspension marks one other setback for loss-making VinFast, which has turned to India for progress after going through difficulties gaining market share within the U.S. and Europe.
The suspension of plans to domestically manufacture the three autos in India has not been beforehand reported.
Vinfast opened its first manufacturing unit exterior Vietnam in southern India final yr and pledged to speculate $2 billion, because it sought to construct a regional manufacturing base serving South Asia, the Center East and Africa.
VinFast didn’t straight deal with whether or not it suspended native manufacturing plans for the three fashions. It stated it has not modified or suspended plans for the VF6 and VF7 fashions at the moment on sale in India and will proceed to assemble them at its manufacturing unit.Whereas VinFast has publicly said growing native sourcing from India, together with by partnerships with home suppliers, plans to fabricate the VF3, VF6 and VF7 within the nation haven’t beforehand been disclosed and had been described to Reuters by individuals accustomed to the matter.
“India is an essential market in VinFast’s long-term enterprise and manufacturing technique,” an organization consultant instructed Reuters in a press release, including that primarily based on market analysis and shopper suggestions it’s making “acceptable changes” to its merchandise to “higher meet the wants of Indian prospects”.
VinFast’s battle to interrupt into the world’s third-largest automobile market echoes challenges confronted by others, together with Volkswagen and Nissan, which didn’t obtain the type of scale that has helped firms, akin to Suzuki and Hyundai, succeed.
In a July memo to suppliers, the automaker stated it determined to “quickly” placed on maintain all improvement work associated to the VF3, VF6 and VF7. Regionally creating and sourcing elements would have allowed VinFast to keep away from costly imports and worth its automobiles extra competitively.
Additionally learn: VinFast India partners Shriram Finance for vehicle finance
Provider investments
The memo additionally requested suppliers to supply an in depth breakdown of the “whole quantity invested to date” on the tasks that require cost or reimbursement from VinFast throughout value classes akin to tooling, engineering and supplies, together with “supporting documentation the place obtainable”.
VinFast didn’t meet its deliberate prices for creating elements in India for the three automobiles, which is why it stopped the work, one of many sources stated.
Each sources declined to be named as they aren’t authorised to talk to the media.
Backed by Vietnam’s largest conglomerate Vingroup, VinFast launched in India in September 2025 with its VF6 and VF7 electric SUVs. Its India manufacturing unit has an preliminary annual manufacturing capability of fifty,000 automobiles and is scalable to 150,000 items.
The automaker has thus far offered about 10,000 automobiles in India, together with to its affiliate ride-hailing firm Inexperienced SM.
VinFast stated in a press release to Reuters it plans to develop India-specific fashions, moderately than simply bringing in present world fashions.
