NEW DELHI (Diya TV) — VinFast has paused plans to manufacture three electric vehicle models in India as the Vietnamese automaker reviews costs and its strategy in the growing market.
The company has asked suppliers to stop work on the VF3, VF6 and VF7 programs, according to two sources and a company memo reviewed by Reuters. The move adds pressure on VinFast as it works to expand outside Vietnam.
The company entered India in September 2025 with the VF6 and VF7 electric SUVs. It also opened its first factory outside Vietnam in southern India. VinFast had pledged to invest $2 billion in the country.
In a July memo, VinFast told suppliers to temporarily halt development work linked to the three vehicles. The memo also asked suppliers to report how much they had invested in the projects.
The requested details included spending on tooling, engineering and materials. Suppliers also had to provide supporting documents where available.
According to one source, VinFast stopped the work after the company failed to meet its planned costs for developing parts in India. Local production could have helped the company reduce import costs. It also could have allowed VinFast to offer more competitive prices.
The VF3 has drawn particular attention. The two-door electric SUV was expected to become one of VinFast’s most competitive models in India.
Meanwhile, VinFast continues to sell and assemble the VF6 and VF7 in the country. The company said it has not changed or suspended its plans for those models currently on sale in India.
VinFast said India remains important to its long-term business and manufacturing strategy. However, the company said it continues to adjust its products based on market research and customer feedback.
The automaker also plans to develop models specifically for Indian buyers. Instead of relying only on existing global models, VinFast wants to create vehicles suited to local demand.
The decision comes as VinFast faces challenges in several major markets. The company has struggled to gain significant market share in the United States and Europe. Therefore, India has become an important part of its international growth strategy.
VinFast’s experience also reflects wider challenges in India’s highly competitive car market. Major automakers such as Volkswagen and Nissan have struggled to reach the scale achieved by Suzuki and Hyundai.
VinFast opened its manufacturing plant in southern India last year. The factory can initially produce 50,000 vehicles annually. The company can eventually increase that capacity to 150,000 vehicles.
So far, VinFast has sold about 10,000 vehicles in India. Those sales include vehicles supplied to Green SM, its affiliated ride-hailing company.
Partnerships with Indian suppliers form part of that effort. However, the latest suspension shows that controlling production costs remains a major challenge.
VinFast’s parent company, Vingroup, supports its global expansion. Yet, the automaker continues to face financial pressure as it invests heavily in new markets.
