VinFast pauses three India EV models over cost concerns – report

VinFast has reportedly suspended local manufacturing plans for three electric vehicle models in India, instructing suppliers to halt related work while the company reassesses costs.

Citing unnamed sources and an internal memo, Reuters reported that VinFast had asked suppliers to "hold all activities" on three programmes: the VF 3, a two-door SUV regarded as its most affordably priced offering for the Indian market, alongside the VF 6 and VF 7 SUVs.

The latter two are presently imported as kits from Vietnam for assembly within the country.

The development represents a setback roughly a year after VinFast, backed by Vietnamese conglomerate Vingroup, entered the Indian market in September 2025 with the launch of its VF 6 and VF 7 electric SUVs.

The company established its first factory outside Vietnam in southern India last year and committed to a $2bn investment as part of efforts to build a regional manufacturing hub serving South Asia, the Middle East and Africa.

According to a memo circulated to suppliers in July, VinFast had "temporarily" halted all development work linked to the VF 3, VF 6 and VF 7.

Suppliers were also asked to submit a detailed breakdown of the "total amount invested to date" across the three projects, encompassing tooling, engineering and material costs requiring payment or reimbursement, together with "supporting documentation where available".

One source indicated that VinFast had been unable to meet its intended cost targets for developing components locally, a shortfall that prompted the pause.

Sourcing components domestically had been intended to reduce reliance on costly imports and enable more competitive pricing within India.

Following the initial report, VinFast stated that the shift in production approach concerns future models, confirming it would continue importing and assembling the VF 6 and VF 7 currently available for sale in India.

The company added that it intends to develop models designed specifically for the Indian market rather than relying solely on existing global models, which it said would facilitate quicker local sourcing.

"India is an important market in VinFast's long-term business and manufacturing strategy," a company representative said, adding that it is making "appropriate adjustments" to its products, based on market research and customer feedback, to "better meet the needs of Indian customers".

VinFast has sold around 10,000 cars in India to date, including sales to its affiliate ride-hailing company Green SM.

"VinFast pauses three India EV models over cost concerns – report" was originally created and published by Just Auto , a GlobalData owned brand.