Vietnamese automotive manufacturer VinFast has confirmed its entry into the Indian electric two-wheeler segment, with a scheduled launch set for the second half of 2026. The company is leveraging its newly inaugurated manufacturing facility in Thoothukudi, Tamil Nadu, to develop a range of scooters specifically engineered for the Indian market.
Production Scale and Infrastructure
The VinFast manufacturing hub in Tamil Nadu is designed for dual-stream production. While the passenger vehicle line is currently ramping up to produce 1.5 lakh units annually—including the VF6, VF7, and an upcoming electric MPV—the two-wheeler division is planned for a significantly higher volume. VinFast aims to establish an annual production capacity of 1 million electric scooters at this site, signaling a major commitment to the Indian market.
Localization and Strategic Development
To ensure price competitiveness, VinFast is focusing on high levels of localization. Pham Sanh Chau, CEO of VinFast Asia, indicated that the upcoming scooters will be “India-specific,” taking into account local infrastructure and consumer behavior. Key elements of this strategy include:
- Collaboration with domestic suppliers for critical components such as battery packs and electric motors.
- Sourcing of local steel for the vehicle’s structural frame (Body-in-White).
- Potential participation in the Indian government’s PM E-DRIVE and Production Linked Incentive (PLI) schemes to optimize costs.
Market Positioning and Rivals
The first India-specific scooters are expected to arrive in showrooms by H2 2026, likely coinciding with the festive season to capitalize on peak consumer demand. VinFast will enter a maturing market currently led by established brands. The company’s offerings are expected to compete directly with:
- TVS iQube
- Bajaj Chetak
- Ather Energy portfolio
By focusing on local manufacturing and tailored product specifications, VinFast seeks to navigate the price sensitivity of the Indian consumer while establishing a foothold in the rapidly growing electric mobility sector.
