From Scooters to Buses, VinFast Plans Full Spectrum Mobility Play in India

Vietnamese automobile major VinFast wants to be Vietnam’s answer to Japan’s Honda or Toyota and South Korea’s Hyundai. It’s banking on India to be a major pillar in realising its ambitions, and it seems to be working on an aggressive strategy. After entering the Indian passenger vehicle market with its first set of models, the VF6 and VF7, in early September this year, the EV maker plans to enter the two-wheeler, bus, and passenger vehicle fleet segments here.

Its Indian scooter market entry is planned for the July-September quarter next year. VinFast has a portfolio of 16 scooters (variants included), and it has initiated evaluations to pick the product/s that will be most suitable for Indian riding conditions and consumer preferences. Speaking to Indian journalists at Hanoi, VinFast Asia CEO Pham Sanh Chau said that discussions are on with VinFast India’s existing dealers regarding them taking up the two-wheeler business too, and the retail arrangement. Currently, in Vietnam, VinFast two-wheelers and cars have separate retail outlets.

Chau also revealed that VinFast is in talks with various state governments, including Telangana, Maharashtra, Andhra Pradesh, Tamil Nadu, for introducing its buses. “We have been selling e-buses to European countries, and you can see a lot of e-buses running here in Vietnam. We would like to do the same thing in India,” Chau told ACKO Drive. 

In India, STUs (State Transport Undertakings) are the major customers for electric buses, as many states are replacing ICE (Internal Combustion Engine) bus fleets with e-buses. India’s PM eBus Sewa Scheme, which commits to support deployment of over 38,000 e-buses between financial years 2024-25 and 2028-29, is also a key driver for established OEMs and new players to focus on the electric bus segment.

VinFast India’s portfolio expansion

Along with preparations for entry into other automobile segments, Chau and his team are also working on expanding Vinfast India’s portfolio. The first move in this regard will be the introduction of its Limo Green – VinFast’s first seven-seater car, by January/February of next year. 

Limo Green is one of the three lines of VinFast’s passenger vehicle business. It is mainly aimed at fleet customers, while the VF range is for the volume segment, and a brand called Lạc Hồng (an extended wheel base and more premium version of the VF9) sits at the top end of the portfolio.

“Limo Green will help our sister company (GSM) to launch operations in India,” said Chau. GSM, VinFast’s parent VinGroup’s fleet business, is planned to be launched in India during the first quarter of 2026.

The various plans by the $7.6 billion Vietnamese conglomerate are a reflection of its vision to “revolutionise transport/mobility worldwide”. While the USA happens to be VinFast’s first overseas market, Asia is where major growth lies for the global automobile industry, and VinFast’s plans are being aligned with this. After India, it has set up a production plant in Indonesia, which will be commissioned next month.

Tapping the bourse

As VinGroup prepares to scale up its game, a plan for listing on the stock exchange is also being discussed. “It's under discussion too. It's in the pipeline,” said Chau. VinFast is among five VinGroup companies that are already listed elsewhere. The EV maker is already listed on the NASDAQ.

Upping the India bet

With a focus on positioning itself as a premium and mass-premium segment player, VinFast envisages India to contribute around 30% of its annual sales volume by the end of this decade. Chau says VinFast wants to change “the traditional mindset that you buy an EV only as a second or third car”. With that in mind, VinFast plans to launch its more affordable models, the VF5, and its best-seller, the entry-level VF3, in India. 

The VF6 and VF7, which are currently available in India, will also be joined by models more premium than them. The VF8, VF9, and even the Lạc Hồng are being considered for India. With all its plans, VinFast, which currently leads the Vietnamese passenger vehicle market with a market share of 36%, has a rather ambitious goal to be among the top three carmakers in India. “We are going to replicate the success story we have in Vietnam. India is one of the destinations,” said Chau.

VinFast had earlier announced an investment plan of $2 billion for India, of which $500 million has been invested to set up its production plant at Thoothukudi, Tamil Nadu. The plant, also planned to be an export hub for markets in South Asia, the Middle East and Africa, has an annual capacity of 50,000 cars, with provision to be scaled up to 150,000 units.

With its aggressive plans, will VinFast win fast in India? Consumers here will be the final jurors.