At No 4, VinFast Racing Towards Podium Finish in India EV Market

Six months after its India debut, the Vietnamese automaker has overtaken established players such as Hyundai Motor, BMW, Kia, and Chinese EV major BYD.

VinFast's Fast Rise in India

Six months after its India debut, Vietnamese automaker VinFast has become the country’s fourth-largest electric vehicle (EV) seller, overtaking established players such as Hyundai Motor, BMW, Kia, and Chinese EV major BYD.

Tesla's Limited Premium Play

Tesla, which also forayed into India along with VinFast in mid-July, has made only limited inroads in the premium segment.

VinFast’s strategy of aggressive pricing in the mid-premium category, domestic manufacturing, and an expanding retail footprint has helped it sell 1,161 units over the past six months.

Tesla, on the other hand, reported sales of 259 units during the same period.

In January so far, Tata Passenger Electric led the market with sales of 5,545 units, followed by JSW MG Motor (3,503 units) and Mahindra Electric (2,670 units).

VinFast ranked fourth with 336 units sold. The Vietnamese automaker also held the fourth position in December, with sales of 375 units.

VinFast's eSUV play is a disruptor

Meanwhile, Hyundai sold 255 units in January so far, BMW around 228 units, Kia 209 units, and BYD about 151 units, according to data from Envirocatalysts.

Data shared by Envirocatalysts shows that VinFast accounted for 1.5 per cent of the 77,755 EV registrations recorded in India since the entry of the two global majors, while Tesla’s share stood at 0.3 per cent.

“VinFast’s entry into India’s mid-premium EV sports utility vehicle (SUV) segment has disrupted entrenched players like BYD, Hyundai, Kia, and MG, displacing 3-5 per cent of their monthly volumes through Vietnamese firm’s locally assembled VF6 and VF7 at aggressive introductory prices,” said Sunil Dahiya, founder and lead analyst, Envirocatalysts. 

Price War Shakes Mid-Premium EV Segment

This prompted rivals to roll out discounts, EMI relief schemes, and warranty extensions in high EV-penetration states such as Maharashtra, Delhi-NCR, and Karnataka.

This triggered a short-lived price war that improved affordability but eroded margins.

“VinFast’s subsequent price hike of ₹80,000 to ₹1.3 lakh in January signals robust demand, easing pressure on competitors who can now stabilise pricing. Consumers continue to benefit from sustained incentives and a more competitive ecosystem, accelerating India’s EV transition amid policy tailwinds like the 30 per cent penetration target,” Dahiya added.

Tier III, IV Cities Drive Next EV Wave

VinFast plans to expand its showroom network from the current 35 to 75 outlets by the end of 2026, with a focus on Tier III and Tier IV cities, which is expected to further increase.

Tesla, on the other hand, has taken a conservative approach, operating only two showrooms -- one in Mumbai’s Bandra Kurla Complex and the other in Delhi’s Aerocity.

"In 2026, VinFast plans to introduce three new models to the Indian market. We will begin with a seven-seater multi-purpose vehicle (MPV). This is a premium yet practical electric MPV developed with both family and commercial use in mind.

"It reflects how we see EV adoption evolving in India, not only as a personal choice, but also as a shared and fleet-based solution,” said Tapan Ghosh, chief executive officer of VinFast India.

Of the 259 Tesla vehicle registrations recorded until December 2025, around 76 per cent of the 197 registrations came from Mumbai and Delhi due to its limited retail presence.

VinFast's Big Bets on Local Manufacturing

Of these, nearly 109 registrations were concentrated in just three districts: Mumbai City, Mumbai Suburban, and Thane.

While experts describe Tesla’s impact as a “negligible disruption” in the premium segment due to its high-priced imports, the numbers are still considerable in India’s premium EV market.

Tesla has sold more vehicles than brands such as Volvo Auto and Mercedes-Benz AG over the past five months. In its stronghold, Tesla outperformed VinFast.

VinFast has committed $1 billion investment in its automotive business in India, of which it has already invested $500 mn in the first phase.

It plans to invest the remaining amount in Tamil Nadu’s Thoothukudi as per the second phase to develop dedicated workshops and production lines for electric buses and e-scooters.

The firm currently operates a 50,000-units-per-annum plant spread across 400 acres at Thoothukudi, which aims to scale up to 150,000 units per annum and also use it as an export hub.

Feature Presentation: Rajesh Alva/Rediff