Following claiming that VinFast has suspended its plans to manufacture three electric vehicle models in India, the Vietnamese automotive manufacturer has refuted the claims.
The reports claimed that the manufacturer asked its suppliers to “hold all activities” on three programmes, including a two-door SUV called VF3 — expected to be its most competitive model in the market — and the VF6 and VF7 SUVs, which it imports as kits from Vietnam and assembles in the country.
“For the models currently being sold in India, VinFast has not changed or suspended its production plans as suggested by some media sources. VinFast will continue CKD assembly of these models at its Thoothukudi plant to serve the Indian market,” the company said in a statement.
The reports came as a surprise since Vinfast opened its first factory outside Vietnam in southern India last year and pledged to invest $2 billion, as it sought to build a regional manufacturing base serving South Asia, the Middle East and Africa, Reuters reported earlier.
“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,” VinFast added.
VinFast’s long-term strategy has been to build a sustainable and resilient supply chain in India, reinforcing the country’s “Make in India” aspirations, tailored to the needs of local customers, the company said.
To achieve this goal, the automotive manufacturer has been actively engaging with local suppliers and has organized consecutive supplier conferences in both Vietnam and India, with the participation of more than 300 Indian suppliers, to explore deeper cooperation opportunities and promote localization, VinFast said.
“In parallel, VinFast continues to work closely with relevant government agencies to seek and promote appropriate policy frameworks that support global EV manufacturers such as VinFast in expanding production and investment in India.
“Recently, VinFast received investment approval for Phase 2 of the Thoothukudi plant expansion plan. This marks an important step in expanding our manufacturing capacity and further reaffirms VinFast’s commitment to its long-term investment plan in the Indian mark,” the manufacturer added.