VinFast said to put brakes on making some cars in India, sources and memo say
Vietnamese automaker VinFast has suspended plans to manufacture three electric vehicle models in India to review costs and strategy. The company intends to pivot toward developing India-specific models to better meet local market needs.
Why it matters
This reflects the challenges global EV manufacturers face when entering highly competitive, price-sensitive emerging markets.
VinFast suspended plans to make three electric vehicles in India and ordered suppliers to halt work on the projects while it reviews costs, as per sources and a memo reviewed by Reuters — a year after Vietnam’s automaker entered the crucial growth market.
The manufacturer VinFast asked suppliers to “hold all activities” on three programmes, including a two-door SUV called VF 3 — expected to be its most competitive model in the market — and VF 6 and VF 7 SUVs, which it imports as kits from Vietnam and assembles in the country.
The suspension marks another setback for loss-making VinFast, which turned to India after difficulties in gaining market share in the U.S. and Europe.
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