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VinFast Becomes India's Fifth-Largest EV Maker in Seven Months
VinFast is a car company from Vietnam that makes electric cars.
Just seven months ago, it started selling its cars in India, and it has already become the country's fifth-biggest electric car seller.
It priced its cars lower than its rivals and promised a 10-year battery warranty to win customers.
Its cars are the VF 6, the VF 7, and a seven-seater family car.
The company built a huge factory in Thoothukudi in Tamil Nadu very quickly.
It also started a ride-hailing service in Delhi using its own electric cars and drivers.
But VinFast is losing a lot of money — almost four billion dollars last year.
Its accountants warned that the company might not be able to keep going.
VinFast says that warning is just a normal accounting rule and that it expects to become profitable by 2027.
It still faces very tough competition from big Indian companies like Tata Motors and Mahindra.
VinFast became India's fifth-largest electric car maker within seven months, holding a 4% share of the EV car market in June.
Aggressive pricing — VF 6 at ₹16.29 lakh and VF 7 at ₹20.89 lakh — plus a 10-year battery warranty drove early demand.
The company plans a $2 billion India investment, starting with $500 million to produce 50,000 EVs annually at its Thoothukudi plant in Tamil Nadu.
Financial worries persist: net losses hit $3.9 billion in CY 2025, and auditor EY raised doubts about VinFast's 'going concern' status.
VinFast launched Green SM India, an all-electric ride-hailing platform in Delhi-NCR, and plans to enter electric two-wheelers and buses.
- Who
- VinFast, the automotive subsidiary of Vietnam's Vingroup conglomerate, led locally by Pham Sanh Chau (CEO, VinFast Asia) and Bach Tuan Anh (CEO, Green SM India).
- What
- Became India's fifth-largest EV carmaker within seven months, reaching 10,000 cumulative sales and a 4% share of the Indian EV car market.
- Where
- India — with a 400-acre plant in Thoothukudi, Tamil Nadu, and an all-electric ride-hailing service launched in Delhi-NCR.
- When
- Between its January 2024 agreement with Tamil Nadu and first customer deliveries in October 2025, reaching 10,000 cumulative sales by May 2026.
- Why
- As part of Vingroup's global expansion after weak US and European sales, India is a key strategic market and a potential export hub.
Cautionary Perspective
Optimistic Perspective
Financial sustainability
Cautionary Perspective
Auditors EY raised doubts about VinFast's ability to continue as a going concern; CY 2025 net losses reached $3.9 billion with accumulated losses of $12.3 billion.
Optimistic Perspective
VinFast says the disclosure reflects accounting standards rather than a deterioration in liquidity; it divested manufacturing assets in Vietnam, shifting $7 billion of debt to buyers, and expects EBITDA breakeven by 2027.
Green SM India ride-hailing economics
Cautionary Perspective
A rival executive estimates the service runs at a -30% margin per ride and says the asset-heavy model of owning cars and hiring drivers on payroll is not sustainable.
Optimistic Perspective
CEO Bach Tuan Anh says ride-hailing is a natural starting point to build direct trust with customers and drivers, with expansion into other services only after the core service is stable.
Chances of sustaining growth in India
Cautionary Perspective
Tata Motors, Mahindra & Mahindra and JSW MG Motors control over 87% of electric car sales, and giants like Hyundai and Maruti Suzuki are intensifying EV competition.
Optimistic Perspective
VinFast's low pricing, 10-year battery warranty, a new model every six months and a planned VF 3 below ₹10 lakh could bring large volumes and shake up the market.
Key facts
- Market position
- India's 5th-largest EV car maker; 4% share of the EV car market in June
- Cumulative India sales
- 10,000 electric cars sold by May
- India investment
- $2 billion planned; $500 million in first phase to produce 50,000 EVs annually
- Manufacturing plant
- 400-acre plant in Thoothukudi, Tamil Nadu; capacity to scale to 150,000 per annum
- Key model prices
- VF 6 at ₹16.29 lakh; VF 7 at ₹20.89 lakh; 7-seater MPV at ₹24.49 lakh
- Warranty
- 10-year battery warranty and buyback offer
- CY 2025 financials
- Net loss of $3.9 billion on revenue of $3.6 billion
- Global sales
- 196,912 EVs in CY 2025, 89% from Vietnam; US sales fell 57% to 1,413 vehicles
Quotes
Bach Tuan Anh, CEO of Green SM India
Chief executive officer of Green SM India, VinFast’s ride‑hailing subsidiary
“"Ride‑hailing is a natural starting point because it serves everyday mobility needs and allows us to build direct trust with customers and drivers."”
rediff.com
“"India is one of our key strategic markets -- it will be a key contributor to our global business over time."”
rediff.com
Sources
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