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VinFast has doubled down on its India plans amid reports that the Vietnamese EV maker was reconsidering its manufacturing strategy in the country. The company has clarified that it remains committed to India and is now planning to go a step further future VinFast electric cars will be designed, developed and manufactured specifically for the Indian market, with higher localisation.

VinFast currently sells the VF 6 and VF 7 electric SUVs in India. The company says it will continue assembling both models through the CKD route at its Thoothukudi plant in Tamil Nadu.

The clarification comes after reports suggested that VinFast had put some of its localisation plans on hold. The company, however, says India remains an important part of its long-term business and manufacturing strategy.

Perhaps the most significant part of VinFast’s latest statement is its confirmation that it doesn’t simply want to bring more existing global models to India.

The company says it has conducted market research and customer clinics for models such as the VF 6 and VF 7. Feedback from Indian customers has already been used to make product adjustments.

For future models, VinFast says it plans to go further by designing and developing vehicles specifically for India. These products will also target significantly higher levels of local content.

That could eventually result in electric cars that are better suited to Indian driving conditions, customer preferences and price expectations.

Localisation will be an important part of this strategy. VinFast says it has been actively engaging with Indian component suppliers and has organised supplier conferences in both India and Vietnam. More than 300 Indian suppliers have been involved in these discussions as the company looks for deeper sourcing partnerships.

The objective is to build a more sustainable and resilient local supply chain rather than relying heavily on imported components. Higher localisation should also help VinFast reduce costs over time. For an EV manufacturer trying to establish itself in India’s highly price-sensitive market, this could be critical.

VinFast has also received investment approval for Phase 2 of its Thoothukudi manufacturing plant expansion. The company has not revealed the additional investment, capacity or timeline associated with Phase 2. However, it says the approval will help increase manufacturing capacity and reinforces its long-term commitment to India.

The current plant has already begun CKD assembly of the VF 6 and VF 7 for the Indian market. VinFast entered India in September 2025 and says it has consistently ranked among the country’s top five EV brands. The company sold 5,627 electric cars during the first half of 2026, taking a 3.8 per cent share of India’s EV market. August was its strongest month so far, with 2,196 units sold, taking cumulative sales since launch beyond 10,415 units.

The latest announcement therefore represents more than just a denial of production rumours. VinFast is effectively saying that it intends to stay in India, increase localisation and develop products specifically for Indian buyers. That could eventually mean smaller and more affordable EVs designed around India’s requirements rather than simply adapting models developed for other markets.

For now, the VF 6 and VF 7 will continue to be assembled at Thoothukudi. But the bigger story is what comes next. If VinFast can successfully build a local supply chain and develop India-specific EVs at competitive prices, the company could have a much better chance of challenging established players in India’s rapidly growing electric-car market.