VinFast puts the brakes on manufacturing some cars in India, sources and memo say

According to Business Recorder, citing Reuters, VinFast has halted plans to build three electric vehicles in India. The Vietnamese automaker asked suppliers to pause work on the VF3, a two-door SUV, as well as the VF6 and VF7 while it reassesses costs. The move comes a year after the company entered India, where it set up its first plant outside Vietnam last year.

VinFast did not directly say whether local manufacturing of those three models had been suspended. It did state that it has not changed plans for the VF6 and VF7, which it will keep assembling at its Indian factory. The company called India an important long-term market and said it plans India-specific models rather than only bringing in global ones.

A July memo asked suppliers to provide a breakdown of the amounts they had invested, covering tooling, engineering and materials. One source said the company had fallen short of its budgeted spending for building parts locally, prompting the halt. VinFast has sold around 10,000 vehicles in India so far, including sales to an affiliate ride-hailing firm.