VinFast eyes India’s affordable EV space with VF 3; compact electric SUV likely to take on MG Comet, Tata Tiago EV

Vietnamese electric vehicle manufacturer VinFast is understood to be evaluating the launch of its compact electric sport utility vehicle (SUV)-VF 3- in the Indian market as part of its strategy to expand into the country’s affordable electric passenger vehicle segment, according to sources familiar with the company’s plans.

While the Haiphong-headquartered firm has not officially confirmed the model’s India launch timeline or pricing, industry sources indicated that the VF 3 is being evaluated for the Indian market and could be introduced at a later stage. The company made its India debut with the premium VF 6 and VF 7 electric SUVs, priced between ₹16.49 lakh and ₹25.49 lakh (ex-showroom), signalling its strategy of establishing itself in the premium EV space before expanding into more accessible segments.

Calibrated strategy, cautious rollout

One person familiar with the matter said VinFast is following a calibrated product strategy. “The company wants to adopt a top-down approach in India and is currently evaluating the feasibility of introducing the VF 3. The focus at this stage is to establish the brand through its premium offerings before expanding into the mass-market EV space,” the person said on condition of anonymity.

Responding to Fortune India's queries, a VinFast India spokesperson neither confirmed nor denied the VF 3’s India plans, saying the company’s immediate priority is to strengthen its passenger vehicle portfolio.

“Our near-term product focus is on completing and strengthening our passenger vehicle portfolio in India. Looking ahead, our focus will be on deepening penetration within these three core models, ensuring customers across metro and Tier-2 markets have access to VinFast vehicles through an expanding dealer network,” the spokesperson said.

The spokesperson added that the company is evaluating opportunities in electric two-wheelers and “more accessible EV formats”, while maintaining that any future product announcements would be made “at the appropriate time”.

Betting on India’s ₹10-lakh EV opportunity

If launched, the VF 3 is expected to be priced at around ₹8 lakh-₹10 lakh (ex-showroom), placing it alongside the MG Comet EV (₹7.36 lakh-₹9.86 lakh) and Tata Tiago EV (₹7.99 lakh-₹11.14 lakh), while also overlapping with popular petrol-powered hatchbacks and compact SUVs such as the Maruti Suzuki Swift, Hyundai Grand i10 Nios and Tata Punch.

India’s electric passenger vehicle market remains relatively small but is expanding steadily. Passenger EVs accounted for around 1.3 lakh-1.4 lakh units in FY26, representing roughly 3% of the overall passenger vehicle market, according to the Society of Indian Automobile Manufacturers (SIAM). Within this, entry-level EVs priced below ₹10 lakh account for nearly 20-25% of electric passenger vehicle sales, led by the MG Comet EV and Tata Tiago EV.

Industry estimates by NITI Aayog and the Rocky Mountain Institute (RMI) suggest EVs could account for nearly 30% of India’s new passenger vehicle sales by 2030, supported by falling battery costs, expanding charging infrastructure and increasing model availability.

Local manufacturing roadmap

VinFast had earlier announced that it is setting up its integrated manufacturing facility in Thoothukudi, Tamil Nadu, which will initially support the company’s passenger vehicle portfolio and exports.

Another person familiar with the development said the localisation roadmap extends beyond vehicle assembly. “VinFast also plans to assemble battery packs in India over the longer term. Once that phase is operational, the VF 3 is expected to roll off the Tamil Nadu assembly line. The model is also being evaluated as a potential export product for right-hand-drive markets in the long run,” the person said.

According to Puneet Gupta, Director, S&P Global Mobility, success in India’s affordable EV market will depend on delivering a compelling ownership proposition rather than merely competitive pricing.

“India’s entry-level EV market is still evolving, but customers today expect much more than an affordable price. They are looking at range, charging convenience, after-sales support and resale value. If VinFast is able to combine competitive pricing with localisation and a strong dealer network, the VF 3 could emerge as a compelling option for first-time EV buyers,” Gupta said.