VinFast drops India’s sales target by 1/3rd, aims to sell 3,000 units in its first year

The Vietnamese Original Equipment Manufacturer (OEM), VinFast, has dropped its annual sales target in India by one-third, The Economic Times reported. With the company’s VF 7 and VF 6 models scheduled to be launched in the coming months, VinFast now aims to sell only 3,000 units in its first year in India.

According to the report, the update came as a result of growing “uncertainties around sales and distribution network in the country”. The fact was further highlighted by the latest delay of inaugurating the company’s manufacturing facility in Thoothukudi, Tamil Nadu, which will now start operating from July 30 instead of the end of June. Therefore, it is anticipated that the business will start accepting bookings for both models in the middle of July and that client deliveries will start by the middle of August.

Citing a source, The Economic Times reported,  “VinFast’s full-fledged plans will unfold only next year when they introduce the VF 3, the company’s affordable SUV. This year will mostly be about making an entry and testing the market”.

According to The Economic Times, dealers have been reluctant in response to VinFast's debut in India. The majority of the dealers that the firm originally designated in 40 locations have revoked their letters of intent, stating ambiguous distribution, pricing, and product positioning strategies. As of now, only eight to 10 merchants are still committed.