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VinFast Lowers Sales Targets & Delays VF 6, VF 7 Electric SUV Launch - Dealership Issues To Blame?
Vietnamese carmaker VinFast has revised its strategy for entering the Indian market, claims a new report, reducing its initial sales target to 3,000 units. The launch of its VF 7 and VF 6 electric SUVs is delayed due to challenges in establishing a distribution network.
The launch of the Vinfast VF 7 and VF 7 was originally set for the festive season. However, the launch is now said to be postponed by a month as the company assess going down the Completely Knocked Down (CKD) kit assembly methods for the two electric SUVs.
The Vietnamese automaker faces hurdles with its distribution strategy. After appointing dealers for 40 locations post the Bharat Mobility Show in January, many have withdrawn their letters of intent. Dealers cited inconsistency in VinFast's approach to distribution planning, pricing, and product positioning as reasons for their withdrawal. Currently, only eight to ten dealers remain committed.
VinFast showcased several models at the Bharat Mobility Global Expo 2025 that it plans to launch in India. These include the VF 3, VF 7, VF 9, and VF e34 SUVs. The company has established a 400-acre integrated EV manufacturing facility in Tamil Nadu with an annual capacity of 50,000 units.
And while the carmaker has gone about its business in developing a dealer network, many dealers who had expressed interest have now withdrawn from the project due to what they call Vinfast's inconsistent approach to distribution planning, pricing, and product positioning
Production at VinFast's Thoothukudi facility in Tamil Nadu was initially scheduled to start on June 30 but is now delayed until July 30. Consequently, bookings for the VF7 and VF6 will open mid-July, with deliveries expected by mid-August.
ET Auto's sources familiar with the company's plans claim that VinFast's plans will properly unfold only next year when they introduce the VF 3, the company's affordable SUV with the firm using its intial entry into India to test the market.
The ripple effect of these delays has impacted VinFast's overall plans for India this year. With production pushed back and limited dealer engagement so far, VinFast's entry into India's growing EV market remains cautious yet hopeful as it seeks to establish a stronger foothold next year with new model introductions.
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