VinFast's India debut faces dealer dropouts and EV production delays
What's the story
Vietnamese electric vehicle (EV) manufacturer VinFast has revised its India strategy, cutting its first-year sales target from 4,500 to 3,000 units.
This change comes as part of the company's plans to launch two new electric SUVs in the country during the upcoming festive season.
However, due to distribution network challenges, VinFast's production has been delayed until July 30.
The company has a 400-acre EV manufacturing facility with an annual capacity of 50,000 units in Tamil Nadu.
Schedule adjustment
Booking and delivery timelines for VF7, VF6 pushed back
The delay in production at VinFast's Tamil Nadu facility has pushed back the booking and delivery timelines for its upcoming electric SUVs, the VF7 and VF6.
Bookings for these models are now expected to open in mid-July, with deliveries starting by mid-August.
This revised schedule comes after a delay from the original plan of opening bookings by June-end and commencing deliveries by July-end.
Network issues
VinFast's distribution strategy faces hurdles
VinFast's distribution strategy has been met with some hurdles, leading to the delay in launching its new models.
After the Bharat Mobility Show in January, the EV maker appointed dealers for 40 locations.
However, most of them have withdrawn their letters of intent (LoIs) due to VinFast's erratic approach toward distribution planning, pricing, and product positioning.
Currently, only eight to 10 dealers remain on board.
Ashish Jain, who was in charge of network development at VinFast, has reportedly resigned.