Vietnamese electric vehicle manufacturer VinFast is preparing to develop two new models specifically for the Indian market as the company changes its strategy in the country.

The vehicles, known internally as VF X and VF Y, are expected to be compact and affordable and will be designed around the preferences of Indian customers. VinFast is targeting a price below $12,000 for the VF X as it looks to compete in the highly competitive electric vehicle segment.

The company had earlier put its plans to manufacture three global models in India on hold because of concerns about production costs. These models included the VF 3, VF 6 and VF 7.

VinFast is working with Indian suppliers at an early stage of development to control costs and avoid the pricing challenges it faced previously.

The company entered the Indian market in 2025 and has sold around 10,000 vehicles so far. Its local assembly facility currently has production capacity of 50,000 vehicles a year, with the potential to increase that figure to 150,000.

VinFast also sees India as a potential manufacturing base for supplying vehicles to South Asia, the Middle East and Africa.