VinFast is refining its India strategy by expanding sales and service reach, with a sharp focus on tier three and tier four cities.
Vietnamese electric vehicle maker VinFast is sharpening its India growth strategy by expanding its sales and service footprint beyond metros, with a particular focus on tier three and tier four cities, while lining up a steady pipeline of new product launches.
The company plans to add 40 new four wheeler showrooms this year to its existing network of 35 outlets across 27 cities, according to Tapan Kumar Ghosh, CEO of VinFast India. While VinFast will double down on metros and larger cities, it is also entering smaller markets such as Vapi in Gujarat, driven by detailed city level analysis of electric vehicle demand and internal combustion engine ownership.
“The EV industry is still concentrated in metros and tier one and tier two cities, but tier three and tier four markets offer significant untapped potential,” Ghosh said. He added that VinFast is not chasing near term market share but is focused on building fundamentals such as product value, pricing, sales and service reach, charging access and overall cost of ownership.
VinFast began dispatches in August 2025 and ranked fourth among 16 electric vehicle OEMs in India by December. Manufacturing currently relies on CKD kits, with localisation at around 10 percent, expected to increase as volumes grow.
The company plans to launch one new model every six months, with three launches scheduled this year. The first will be the seven seat Limo Green electric MPV, expected by April, followed by the VF5, positioned against the Tata Nexon EV, and a more premium SUV above the VF7.
VinFast operates a 400 acre manufacturing facility in Tamil Nadu with an installed annual capacity of 50,000 units, scalable to 150,000 units. It has committed $500 million to the plant and earmarked another $500 million for a second facility focused on electric buses and two wheelers, both expected to launch in the second half of 2026.
