VinFast has temporarily halted work on plans to manufacture three EVs in India.
Suppliers have been asked to stop work on the VF3, VF6 and VF7 programmes.
The move comes as the loss-making automaker looks to expand in India amid challenges in other markets.
VinFast Puts India Plans For Three EVs On Hold, Asks Suppliers To Halt Work
The Vietnamese automaker has paused development work on the VF3, VF6 and VF7 as it reassesses costs in India
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Vietnamese electric vehicle maker VinFast has suspended plans to manufacture three electric vehicles in India and asked suppliers to halt work while it reassesses costs, according to a Reuters report.
The programmes include the VF3, a two-door SUV expected to be one of VinFast’s most competitive models in India, along with the VF6 and VF7 SUVs. The latter two are currently imported as kits from Vietnam and assembled at the company’s Indian plant.
The move comes less than a year after VinFast entered India, a market it sees as important for its long-term growth. The company has struggled to gain market share in the US and Europe and is looking to India as a key growth market.
VinFast Reviews Cost Of Local Manufacturing
In a July memo, VinFast told suppliers to temporarily stop development work related to all three vehicles. The company also asked suppliers to provide details of money already spent on the projects, including costs related to tooling, engineering and materials.
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One source told the news agency that VinFast had not met its targeted costs for developing and sourcing parts in India for the three vehicles. Local production would have helped the company reduce import costs and price its EVs more competitively.
The plans to manufacture the VF3, VF6 and VF7 locally had not previously been publicly disclosed by VinFast.
India Remains Key Market For VinFast
VinFast opened its first factory outside Vietnam in southern India last year and had pledged to invest $2 billion. The facility has an initial annual production capacity of 50,000 vehicles, which can be expanded to 150,000 units.
VinFast launched its India operations in September 2025 with the VF6 and VF7 electric SUVs. The company told Reuters that it has not changed or suspended plans for these models currently sold in India and will continue assembling them at its factory.
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VinFast has sold about 10,000 vehicles in India so far, including sales to its affiliated ride-hailing company Green SM. The company said India remains an important part of its long-term manufacturing strategy and that it plans to develop India-specific models based on market research and customer feedback.