VinFast delays India entry amid dwindling dealer confidence
A new report from The Economic Times says VinFast’s planned dealer network in India is far from completion. The company had appointed dealers for 40 locations, but most of them have backed out, revoking their letters of intent.
Many of the dealers lost interest in VinFast due to inconsistency in the approach to distribution planning, pricing, and positioning. Only eight to ten retail partners are still on board. One of the dealers who withdrew its Letter of Interest said the company doesn’t appear to have a clear plan for showroom count, pricing, or sales expectations.
Another retail partner that also walked away said VinFast has not done enough marketing since its Indian debut at the Auto Expo 2025 and lacks brand awareness. Some of the other people aware of the developments said Ashish Jain, VinFast’s Head of Dealer Development in India, appears to have left the company, marking another major setback at such a crucial time.
VinFast built a local factory with an annual production capacity of 50,000 units in Thoothukudi, a port city in the southern state of Tamil Nadu. The company planned to start assembling EVs from completely knocked-down (CKD) kits on 30 June but has postponed the SOP to 30 July because of difficulties in establishing its dealer network.
Initially, VinFast will offer the VF 7 and VF 6 SUVs in India, and it plans to start accepting orders in mid-July and expects to commence deliveries by mid-August. The company has reduced its targeted sales volume from about 4,500 units earlier to 3,000 units. The Vietnamese automaker is counting on the low-cost VF 3 to significantly grow its sales, with plans to launch it in 2026. Unlike
the VF 7 and VF 6, it may locally manufacture the VF 3 to price it competitively.
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