The Indian two-wheeler market is set for a new contender, with the Vietnamese EV manufacturer VinFast reportedly planning its entry later this year. According to an Autocar India report, its upcoming electric scooters are being specifically developed to meet Indian road conditions and local consumer preferences, signaling a tailored strategy for its EVs.
VinFast To Enter the EV Two-Wheeler Segment
VinFast is not a newcomer to India, having already established a presence here with its electric cars assembled at its Tuticorin plant in Tamil Nadu. However, the company’s ambitions are expanding, and it is now strategically setting its sights on the fiercely competitive electric two-wheeler segment. This space is currently the stronghold of major domestic players like TVS Motor Company, Bajaj Auto, Hero MotoCorp, Ather Energy, and Ola Electric, making VinFast’s planned entry a bold move to watch.
VinFast’s entry into the electric two-wheeler space is expected to significantly intensify the competition in India. As one of the notable global players in electric scooter manufacturing and sales, the brand brings considerable heft. To support these two-wheeler ambitions, the company is reportedly planning a major infrastructure push, looking to expand its manufacturing capacity by adding a dedicated EV two-wheeler production line.
The scale of its vision is what’s truly telling. While VinFast is already planning to increase its four-wheeler production capacity to 1.5 lakh units annually, its long-term vision for electric two-wheelers is set far higher. Considering the vast market potential of India, the company is reportedly targeting an annual EV two-wheeler production of up to 1 million units, a figure that underscores its serious commitment to capturing a major share of this high-volume segment.
A Localized Strategy for Market Success
To build a sustainable and competitive position in India, VinFast’s strategy hinges on deep integration. It is said to be actively in discussions with local suppliers, a move crucial to reduce production costs further and improve localization. In my view, this increased localization would not only directly help make its EVs more affordable but also critically improve after-sales service availability and enhance the overall long-term ownership experience, which are decisive factors for Indian buyers.
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The company’s groundwork appears thorough. These upcoming electric scooters are being developed after extensive studies of Indian user behavior, road infrastructure, and price sensitivity, ensuring a product tailored specifically for the Indian market. Furthermore, VinFast is also evaluating critical financial incentives under the Indian government’s key PLI scheme and PM E-DRIVE scheme, policies designed to support new EV investments. This dual focus on product localization and fiscal strategy underscores a well-considered plan for its new venture.
Drawing from a Proven Global Portfolio
VinFast is not starting from scratch. The company has a solid foundation, having been selling a wide range of electric scooters in its home market of Vietnam for several years. This portfolio includes popular models like the VeroX, Feliz, Evo, Evo Grand, Evo Grand Lite, Flazz, and ZGoo. These existing products offer a good battery range and advanced technology, giving the company a ready-made toolkit. For the India launch, these proven designs could be effectively reworked or adapted to meet local regulations and tastes, accelerating time-to-market.
In addition to its focus on scooters, VinFast’s broader India strategy is multifaceted. The company reportedly plans to introduce three new electric cars by 2026. This lineup is expected to include the VF 5 hatchback, the VF 3 micro EV, and the Limo Green MPV, the latter of which could be sold primarily for commercial purposes. This parallel push in both two-wheeler and four-wheeler segments demonstrates a comprehensive approach to capturing a significant share of the country’s evolving EV ecosystem.
