VinFast Halts Plans to Manufacture Three EV Models in India
VinFast has temporarily suspended plans to manufacture three electric vehicles in India and asked suppliers to halt work on the projects, according to sources and a company memo reviewed by Reuters. The models affected are the VF3, VF6 and VF7, with the company reassessing development costs and investments.
The move is a setback to VinFast’s expansion strategy in India, where it opened its first overseas factory last year with a planned investment of $2 billion. The company said it has not suspended plans for the VF6 and VF7 currently sold in India and will continue assembling them at its facility. It also said India remains important to its long-term manufacturing strategy.
A July memo reportedly asked suppliers to provide details of investments already made in tooling, engineering and materials. One source said VinFast halted the projects after development costs for locally sourced components exceeded its plans. The company has sold around 10,000 vehicles in India so far, while its factory has an initial annual capacity of 50,000 vehicles, expandable to 150,000.
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