VinFast is developing two electric vehicles specifically for the Indian market, Reuters reported, citing unnamed sources.
The move comes weeks after the Vietnamese carmaker shelved plans to build certain global models in the country.
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The shift moves away from VinFast’s earlier strategy of modifying existing vehicles for India, a market the loss-making manufacturer sees as central to its growth after failing to gain large scale in the US and Europe.
VinFast has committed $2bn to India, where it opened its first overseas factory last year, with plans to turn the site into a manufacturing hub covering South Asia, the Middle East and Africa.
The company has opened early-stage talks with Indian suppliers on the two vehicles, internally named VF X and VF Y, according to the sources cited in the report, who cautioned that the plans remain under review and could still change.
A VinFast spokesperson declined to comment, telling Reuters that details on new products would be shared “at the appropriate time”.
In July, VinFast paused plans to manufacture the VF 3, VF 6 and VF 7 in India after concluding it could not cut costs enough to hit target prices.
The VF 6 and VF 7 continue to be sold in India as kits shipped from Vietnam and assembled locally, an arrangement VinFast intends to keep.
In August, VinFast executives met roughly 200 Indian suppliers to discuss the company’s plans for the country, two sources said.
Suppliers have been brought in from the start of development this time, one source said, to manage costs early and avoid the problems behind July’s suspension.
The VF X is intended to sit between the VF 3 and VF 6 in size, reflecting Indian buyers’ preference for larger vehicles, though the design is still being worked out.
VinFast is targeting a price under $12,000 for the model – close to the VF 3’s price in Vietnam – which would put it in a large but competitive EV segment currently led by Tata Motors.
VinFast has sold around 10,000 vehicles in India since entering the market in September 2025.
Its assembly plant has capacity for 50,000 cars annually, expandable to 150,000, and has cleared approval for a second-phase expansion.
Frequently asked questions
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How is BMW integrating hydrogen into its product line-up?
ollowing successful global testing of the pilot fleet, the BMW iX5 Hydrogen will be the first hydrogen-powered BMW Group production model released onto the market. Going forward, the new BMW X5 will offer customers the choice between a battery-electric drive train, plug-in hybrid, petrol, diesel or hydrogen fuel cell technology.
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What is currently being tested in the BMW iX5 Hydrogen?
The focus of the current testing is on the interaction of all drive system components. This includes the fuel cell system, high-voltage battery, electric motor, hydrogen tanks and the overall system control unit. Efficiency, driving performance and driving dynamics will also be examined under different operating conditions.
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How does the fuel cell system work?
nside the fuel cell, hydrogen from the tanks reacts with oxygen from the ambient air in an electrochemical reaction. This generates the electric current that drives the electric motor and powers the vehicle. The BMW iX5 Hydrogen uses the third-generation fuel cell system co-developed by the BMW Group and Toyota Motor Corporation.
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What are the advantages of hydrogen fuel cell technology?
Hydrogen fuel cell vehicles offer locally emission-free driving, combining electric propulsion with short refuelling times. For the BMW Group, fuel cell technology supplements battery-electric vehicles primarily where high range and high versatility are required.
