Having faced a price wall for their first Indian offerings. VinFast will try again with new approaches. The Vietnamese carmaker is currently working on two electric cars designed exclusively for Indian customers, namely, VF X and VF Y. This decision was made only several weeks after VinFast had put on hold localization efforts for three other models: VF 3, VF 6, and VF 7.

Also Read: A Comprehensive Electric 4-Wheeler Sales Report for August 2026!

The Reasons for Going Back to the Drawing Board

VinFast’s first attempt to localize three models in India proved to be hindered by the simple reason of cost. After internal assessments, the company concluded that it could not reduce prices sufficiently low in order to meet target markets for its products. Including a cheap entry-level electric vehicle. That is why VinFast suspended further developments and supplier works for the above models.

VF X: The Sub $12,000 India EV

VF X is the main event of this novel strategy. It will be designed as an entry offering that would sit between the VF 3 microcar and the VF 6 crossover. Giving the families in India the extra cabin space, without stepping up to a full-size midsize SUV.

The key takeaways regarding VF X so far:

  • Intended cost: less than $12,000 (around Rs 11.5 lakh) in line with VinFast's strategy for making mass-market EVs.
  • Segment: more spacious than VF 3, but smaller and cheaper than VF 6. Targeting a niche in the middle of first-timers in electric vehicles.
  • Project development stage: initial talks with Indian component suppliers have already started, although no commitments have been made yet.

VF Y: the second India-exclusive car

Very little information is available on VF Y. However, it is evident that VF Y will be another part of the India-exclusive lineup. Although the category, body type, pricing, and launch schedule remain undisclosed. It is expected that VinFast will provide more details only after finalising its internal approval and costs.

Push Towards Localisation

In addition to the launch plans for the new model, VinFast has obtained an approval for phase II of its factory in Thoothukudi, Tamil Nadu. However, the company has not provided any information on the investment size, additional capacity, or time frame for this decision.

VinFast confirms that the India versions of the future models will not be mere versions of the world cars. These models will be:

  • Developed specially for India
  • Manufactured using increased localisation in order to save money
  • With the use of extended local network of suppliers

For the moment, VF 6 and VF 7 will be manufactured using CKD kits in India. The latest delay is associated with the additional localisation and development of these projects.

Implication for Indian EV buyers

Under such conditions, Indian consumers will be able to buy the affordable and India-made EV from VinFast. Indeed, the VF X model targeting at less than $12,000 cost is obviously designed for the mass market segment of future growth of EV sales.

ELCTRIK Speaks

VinFast is hitting the reset button on their plans for India with two fresh new models that are more India-specific. The VF X will be a critical component, this is bigger than VF3. Less than $12,000 EV is aimed at appealing to Indian families that value affordability. It could be what they need to get their foot in the door in India.

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