Mumbai, Jan 21 (PTI) Vietnamese electric vehicle (EV) maker VinFast is eyeing smaller cities, mainly tier-3 and tier-4 markets, along with bigger cities, as it sets out to expand its products range and geographical
presence, the company’s Chief Executive Officer Tapan Ghosh has said.
Part of the Vietnamese conglomerate Vingroup, VinFast made its India debut last year and started selling its vehicles from September has two e-vehicle models — VF6 and VF7 SUV — and both of them have received 5-star ratings by Bharat NCAP.
The company has already announced plans to launch three new models this year in addition to entering into the electric bus and two-wheeler segments by the second half of 2026.
“Network becomes very important. So just concentrating on metro, tier-1, tier-2 cities will not be enough. We have to also be present in tier-3, tier-4 cities and that will be our strategy. Although currently they (tier-3 and tier-4 markets) may not have that big a volume like the metros, but still they offer significant potential going forward. So, we would like to be proactive there,” said Ghosh.
Stating that VinFast will employ two types of network strategy — further strengthening the company’s position in metro, tier-1 and tier-2 cities, where it is already present as well as penetrate into smaller markets (tier-3 and tier-4) where it does not have much presence.
“We would like to increase our penetration because we are launching three new models. So effectively, we will be having a good number of models, at least four models this year and next year also,” he said.
He said the company has 35 outlets and plans to add another 40 this year, including some in tier-3 and tier-4 cities.
Ghosh said the company, besides getting new customers for its EVs as part of the strategy, would attract ICE engine-powered vehicle owners for switching to EVs through special campaigns.
He said company will begin its product offensive in 2026 with the launch of a seven-seater MPV in the first half of the year for both the commercial fleet as well as personal segment but separately.
“This is a premium yet practical electric MPV developed with both family and commercial use in mind. It reflects how we see EV adoption evolving in India, not only as a personal choice, but also as a shared and fleet-based solution,” Ghosh stated.
He said in Vietnam, the company has got a huge array of products with some premium ones that can compete with Mercedes and BMW. “So (in India) we have started with the launch of VF6, VF7 because we wanted to create a premium positioning and we also know that this particular segment is also quite big.” In addition, the company will also launch two more products, the details of which are being worked out, he said.
“Beyond the premium segment MPV, additional models will follow, each addressing different segments and needs. Our focus remains on safety, reliability, and long-term value, the fundamentals that sustain brands over time, rather than chasing trends,” he said.
Vinfast currently has its 500-acre manufacturing facility in Thoothukudi (Tamil Nadu), which has come up at an investment of USD 500 million, with a capacity to produce 50,000 four-wheelers per annum, and can be expanded to 1.50-lakh.
Besides, it has also announced another USD 500-million investment for acquiring 400 acre of land in the same location for manufacturing e-buses and e-two-wheelers, he said.
“That’s a huge investment (USD 1 billion) which we have planned. That’s a big land bank also (900 acres). This is the initial commitment which we have done,” Ghosh said.
He said the company will also look at exports in future once the domestic market has attained volume that would naturally increase the capacity utilisation and subsequently the localisation in the products, which stands around 10 per cent.
VinFast currently imports its vehicles as completely knocked down units.
“But going forward as the scale increases, as volume increases, localiation will also increase a lot,” he said. PTI IAS TRB
