VinFast Opens First India Showroom in Surat; 35 Dealerships Coming by 2025 End

Vietnam's electric car (EV) behemoth VinFast Auto has formally launched in the Indian retail market with its first showroom opening in Surat, Gujarat. The move comes days before the company is expected to break ground on its EV manufacturing plant in Thoothukudi, Tamil Nadu, and in the same month as Tesla's official entry into India, laying the groundwork for a high-stakes fight in the country's fledgling premium EV market.

Also Read: VinFast Announces Partnership With 13 Leading Dealers Groups Amidst Delays

The new VinFast Surat dealership is run by Chandan Car, a well-known automobile retail player, and covers 3,000 sq. ft. of space in Piplod, a locality in the city. It will function as a brand experience centre for future customers and will feature VinFast's new electric SUVs, VF 6 and VF 7, both targeting the premium urban EV consumer.

Retail Footprint Begins Taking Shape

VinFast's retail approach looks aggressive and rapid. The Surat showroom is the first of what the company says will be a 35-dealer network in 27 cities by end-2025, a strategy intended to ramp up visibility and consumer access rapidly in a market where trust and after-sales services continue to be key purchasing drivers. The company started pre-bookings from July 15 for the VF 6 and VF 7 at a refundable token amount of ₹21,000.

Also Read: VinFast Targets June Launch for $2 Billion EV Plant in Tamil Nadu

Why the Timing Is Important: Tesla's Entry Brings Competitive Imperative

VinFast's arrival in India coincides with Tesla's long-awaited market entry, with the US EV leader set to announce its India play in weeks to come. The two firms have a common global EV-first DNA, a vertically integrated business model, and plans to localise manufacturing. Their India strategy, however, differs.

While Tesla is yet to seal incentives, import tariffs, and location scouting for its factory (rumoured to be Gujarat or Maharashtra), VinFast has already invested more than $500 million in a production facility in Thoothukudi (Tuticorin), Tamil Nadu, announced earlier this year. The proposal involves plans for local assembly, employment generation, and long-term EV supply chain establishment in India, which could provide VinFast with a first-mover advantage in localisation.

Also Read: Tesla Model Y India Launch Review: The Electric Elephant Has Landed!

Moreover, VinFast's initial concentration on tier-2 cities such as Surat, instead of starting only in metros, demonstrates an approach of penetrating growing EV demand outside of merely Delhi, Mumbai, or Bengaluru. 

What VinFast Is Offering

The upcoming two models, the VF 6 and VF 7, are both premium electric SUVs in the compact and mid-size segments, respectively. Internationally, both of these will compete with vehicles such as the Hyundai Kona Electric, BYD Atto 3, and even the MG ZS EV. Pricing for the Indian market has not been announced yet, but it will be competitive with imported kits and local assembly.

VinFast isn't just putting all its eggs in the product basket. The company has partnered with:

• RoadGrid for charging infrastructure development
• myTVS for servicing and after-sales
• Global Assure for roadside assistance
• BatX Energies for battery recycling and sustainability programs

Why This Matters

India's passenger electric vehicle market is under-penetrated, and EVs are currently below 2 per cent of overall car sales as of H1 2025. Tata Motors holds the mass EV market share along with MG, Mahindra, whereas Mercedes, BMW, Audi, and Volvo are present in the premium segment. Yet, affordable mid-premium electric SUVs (₹25–35 lakh) are a white space, where VinFast and Tesla have the potential to cause disruption.

Also Read: VinFast VF6, VF7 Bookings Open; India Launch In August

Tesla's arrival, however, may increase awareness and demand for EVs among income groups, but the success will largely depend on local pricing and infrastructure preparedness, where VinFast has acted quickly so far.