After Tesla’s India Entry, Vietnam’s VinFast Launches Its First EV Showroom in the Country

Vietnamese electric vehicle (EV) manufacturer VinFast has officially marked its entry into the Indian market by inaugurating its first showroom in Surat, Gujarat. This move comes shortly after Tesla's debut in India, setting the stage for heightened competition in the country's growing EV sector.

Located in Surat’s Piplod area, the 3,000 sq. ft. facility will offer an immersive product experience, test drives, vehicle purchases, and after-sales services. The showroom will feature VinFast’s upcoming premium electric SUVs—the VF 6 and VF 7—tailored for Indian buyers.

India Gets First Right-Hand Drive Models from VinFast

India becomes the first country where VinFast is launching the right-hand drive versions of its VF 6 and VF 7 electric SUVs. The company has big plans for expansion, with a goal to open 35 dealerships across 27+ cities by the end of 2025.

Pre-bookings for both SUV models opened on July 15, 2025, with a fully refundable booking amount of ₹21,000. Customers can reserve their EVs either at the showroom or online at VinFastAuto.in.

Vehicles to be Assembled in Tamil Nadu Plant

VinFast’s EVs will be locally assembled at its upcoming facility in Thoothukudi, Tamil Nadu, reaffirming the company’s long-term commitment to India. The manufacturing plant is a key part of VinFast’s strategy to position India as a future EV production hub.

The company has already committed an initial investment of $500 million, part of a larger $2 billion deal signed with the Tamil Nadu government in 2024.

CEO Signals Deep Commitment to Indian Market

Pham Sanh Chau, CEO of VinFast Asia, emphasized the strategic importance of India, stating,

“The first VinFast showroom in Surat is a symbol of our deep commitment to India. We are excited to bring the VinFast experience closer to Indian consumers, offering not just electric vehicles but a complete ownership journey built on trust, quality, and service.”

India’s EV Market: Huge Potential, Rising Demand

India’s EV sector is expanding rapidly. Sales of electric passenger vehicles surged from just 5,000 units in 2020 to over 113,000 units in 2024. Though EVs currently make up less than 3% of total car sales, the government aims to push this to 30% by 2030, highlighting a massive growth opportunity.

The increasing consumer demand, supportive government policies, and rising fuel costs have made India an attractive destination for global EV players like VinFast and Tesla.

VinFast’s Global Strategy Shift from U.S. to India

Founded in 2017 and backed by Vietnam’s largest conglomerate Vingroup, VinFast started making EVs in 2021. While its initial focus was on the U.S. market, sluggish sales and regulatory uncertainties—including rising tariffs—have led the company to shift its attention to more promising regions like India.

Despite being unprofitable, VinFast made headlines in 2023 when it briefly became the third most valuable automaker globally, following Tesla and Toyota, after a spectacular IPO on Nasdaq.

Tesla’s India Strategy: Brand Building Over Volume

VinFast’s arrival in India coincides with Tesla’s showroom launch in Mumbai’s Bandra Kurla Complex (BKC) on July 15. Tesla is showcasing its Model Y crossover, priced at over $56,000 before taxes, about $10,000 more than the U.S. base price.

A second Tesla showroom is expected in New Delhi by the end of July, but the company has no confirmed plans to set up a manufacturing unit in India yet. Tesla’s current strategy appears focused on brand awareness and demand testing rather than aggressive market capture.

Challenges Ahead in a Crowded EV Market

While VinFast doesn’t view Tesla or BYD as direct competitors, the Indian EV market is competitive and price-sensitive. Domestic automakers, evolving customer expectations, and regulatory dynamics pose considerable hurdles.

VinFast’s success will depend on how well it can localize offerings, build a reliable service network, and compete on pricing and innovation. The next few years will determine whether the company can gain a foothold in this complex and promising market.