- VinFast has paused manufacturing plans for three electric vehicles in India due to cost reassessment
- The models affected include the VF3, VF6, and VF7 electric SUVs, with VF3 being a key competitive model
- VinFast had launched its India operations in 2025 and opened its first factory in southern India
Vietnamese automobile firm VinFast has halted the plan to manufacture three electric vehicles in India and asked suppliers to suspend work on the projects as the company reassesses costs, according to a report by Reuters citing two sources and a company memo.
The reported move comes a year after the automaker entered the Indian market. Vietnam's largest conglomerate Vingroup VinFast backed VinFast was launched in India in September 2025 with its VF6 and VF7 electric SUVs.
The company has asked its suppliers to "hold all activities" on three products, including a two-door SUV named VF3, which was expected to be its most competitive model in the market, along with VF6 and VF7 SUVs, imported as kits from Vietnam and assembled in India.
The latest development marks another setback for loss-making VinFast, which started India operations for growth following difficulties in gaining market share in the US and Europe.
Hours after the Reuters report emerged, a VinFast representative told the media that the claim of halting manufacturing operations is "misleading".
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"For the models currently being sold in India, VinFast has not changed or suspended its production plans as suggested by Reuters' sources. VinFast will continue CKD assembly of these models at its Thoothukudi plant to serve the Indian market," the representative said.
"India is an important market in VinFast's long-term business and manufacturing strategy. Since entering the market, we have conducted various market research studies and car clinics to evaluate the needs, preferences, perceptions, and expectations of local consumers toward models such as the VF 6 and VF 7. The feedback gathered has enabled VinFast to make appropriate adjustments to deliver products that better meet the needs of Indian customers, the company added.
Notably, the automaker opened its first factory outside Vietnam in southern India and promised to invest $2 billion, as it aimed to build a regional manufacturing base for South Asia, the Middle East and Africa.
In a memo sent to suppliers in July, as reported by Reuters, Vinfast shared its plan to "temporarily" suspend all development work related to the VF3, VF6 and VF7. Developing and sourcing parts locally was expected to help VinFast to avoid expensive imports and price its cars more competitively.
Additionally, the memo reportedly urged suppliers to give a detailed breakdown of the "total amount invested to date" on the projects that need payment or reimbursement from VinFast across various categories such as tooling, engineering and materials, along with "supporting documentation where available".
The company was not able to meet its planned costs for making parts in India for the three cars. This is why it decided to halt the work, one of the sources told the news agency.
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