Core Advantage of VinFast Knocked Beyond Vehicle in Competitive Indian Electric Vehicle Market Competition
In a bid to establish a long-term presence in India's electric vehicle (EV) market, Vietnamese automaker VinFast has unveiled a multi-faceted strategy. The approach, aimed at localised manufacturing, service infrastructure, charging networks, and battery recycling, positions VinFast as a contender in the rapidly growing Indian EV sector.
The cornerstone of this strategy is a flagship EV assembly plant in Tamil Nadu, which received a $500 million initial investment. The factory, designed to produce 50,000 units per year in the first phase, aims to leverage India's manufacturing ecosystem and become a hub for production and exports to South Asia, the Middle East, and Africa. Domestic localization is ensured through partnerships with Indian suppliers and workforce upskilling, aligning with India's green industrialization goals.
To bolster its service and after-sales network, VinFast has partnered with local firms like RoadGrid, myTVS, and Global Assure. This collaboration results in the establishment of 120 workshops across India, offering robust vehicle maintenance and customer support in major cities. To further enhance the charging infrastructure, VinFast partners with myTVS and other local partners to develop accessible EV charging services, addressing the critical need for easing consumer adoption and addressing infrastructure gaps in the market.
Sustainability and battery recycling are also key components of VinFast's strategy. The company works with BatX Energies to implement battery recovery, reuse, and recycling programs that comply with India's Extended Producer Responsibility (EPR) laws. This initiative is crucial for circular manufacturing and environmental sustainability, helping the company meet regulatory standards while reducing supply chain risks.
VinFast's strategy targets underpenetrated segments like commercial vehicles and focuses on scalable growth. The company aims to capture approximately 20% of India's commercial EV market by 2025. The approach also incorporates geopolitical diversification and cost-competitive offerings tailored to Indian consumers, known for their price sensitivity.
By building a robust, self-contained automotive community, VinFast seeks to secure long-term customer loyalty. In 2025, the company plans to have 35 fully operational dealerships nationwide. The ecosystem, designed to foster long-term trust with customers, includes production, retail, and after-sales support.
Despite the dominance of a few manufacturers in India's car market and competition from over a dozen brands, VinFast's integrated approach to production, sales, and after-sales service sets it apart. Experts predict that only half of these brands might survive the coming shake-out, underscoring the importance of a comprehensive strategy like VinFast's.
India's EV market has shown promising growth, with total light vehicle sales reaching 4.9 million in the same year. In 2024, India sold nearly 100,000 EVs, a 20% increase from the previous year, indicating growing consumer interest in electric mobility. However, the number of public charging stations in India remains insufficient, with only 29,277 public charging stations as of July 2025, according to the Ministry of Power (MoP), highlighting the need for a coordinated, manufacturer-supported charging infrastructure.
As more than half of global car buyers express uncertainty about brand loyalty, with poor after-sales experiences being a key reason for considering a switch, VinFast's focus on after-sales service could prove crucial to its success in the Indian market. The success in India's EV market will belong to those who genuinely care for their customers after the sale.
- VinFast, the Vietnamese automaker, has announced a multi-faceted strategy to compete in India's electric vehicle market, focusing on localized manufacturing, service infrastructure, charging networks, and battery recycling in Tamil Nadu.
- As part of this strategy, VinFast has partnered with local firms like RoadGrid, myTVS, and Global Assure to establish 120 workshops across India, offering robust vehicle maintenance and customer support in major cities.
- Recognizing the need for sustainable practices, VinFast has also collaborated with BatX Energies to implement battery recovery, reuse, and recycling programs that comply with India's Extended Producer Responsibility (EPR) laws.
- By aiming to capture approximately 20% of India's commercial EV market by 2025, VinFast showcases a growth strategy that is both scalable and focused, targeting underpenetrated segments like commercial vehicles.
- In a bid to secure long-term customer loyalty, VinFast plans to have 35 fully operational dealerships nationwide by 2025, creating an automotive community that fosters trust through production, retail, and after-sales support.
- Experts predict that a comprehensive approach like VinFast's is essential in the competitive Indian automotive market, where a lack of brand loyalty and insufficient charging infrastructure could leave some manufacturers struggling in the face of growing consumer interest in electric vehicles.
