VinFast Opens India SUV Bookings as Tesla Enters Market

A Landmark Day for EV in India

On July 15, 2025, the electric vehicle (EV) industry in India witnessed a double milestone: VinFast, the Vietnamese EV maker, launched pre‑bookings for its first two models in the Indian market—the VF 6 and VF 7—while Tesla officially began sales operations with the launch of its first showroom in Mumbai. These twin developments mark India’s emergence as a serious battleground in the global EV race.

VinFast’s India Entry: VF 6 & VF 7 Launch & Booking Details

• Pre‑booking opens July 15, 2025 via VinFast showrooms or the official VinFastAuto.in website.
• Reservation requires a fully refundable token of ₹21,000.
• Official launch is slated for August 2025, around the same time VinFast inaugurates its Thoothukudi (Tamil Nadu) assembly plant.
• VinFast has partnered with 13 dealer groups to set up roughly 32 outlets across 27 cities, aiming for 35 dealerships by year-end 2025.

Model Highlights

• VF 6 is a subcompact electric SUV with a 59.6 kWh battery, up to 440 km WLTP range, ADAS Level 2, infotainment, panoramic roof—expected price between ₹18 lakh and ₹24 lakh.
• VF 7 is a mid‑size SUV offering both FWD (201 BHP, 310 Nm) and AWD dual‑motor (349 BHP, 500 Nm) variants, 70–75 kWh battery capacity, range ~450 km WLTP, Level 2 ADAS, panoramic roof, touchscreen, wireless charging, leatherette interiors, and 8 airbags.

Tesla’s Grand India Debut: Model Y Rolls Out

• On July 15, 2025, Tesla opened its first India showroom in Bandra‑Kurla Complex (BKC), Mumbai, marking its long-awaited entry into the Indian market.
• Tesla initially offers only the Model Y—imported as completely built units (CBU) from Shanghai, with six units already shipped for display and demo.
• Two variants on offer:
  • Rear-Wheel Drive (RWD) priced at ₹59.9 lakh ex-showroom, approx ₹61 lakh on-road.
  • Long-Range AWD variant at ₹67.9 lakh ex-showroom, about ₹69–69.14 lakh on-road.
  • Full Self-Driving add-on (optional): ₹6 lakh.
• Deliveries are expected commencing from August 2025 (Q3).
• High prices reflect import duties of around 70%, possibly exceeding 100% in some cases, contributing to elevated pricing compared to overseas markets.

Strategic Contrast: VinFast vs. Tesla

Indian EV Market Context

• EVs remain a small part of India’s auto market—just 2–4% of total sales as of early 2025. The government targets 30% EV penetration by 2030.
• Major Indian players like Tata Motors, Mahindra, and BYD dominate lower-cost and mainstream EV segments.
• Tesla and VinFast aim to accelerate adoption with foreign-designed EVs tailored for Indian roads.

VinFast’s Commitment to India

VinFast is serious about India. Its Thootukudi facility in Tamil Nadu, a 400-acre SIPCOT estate, broke ground in February 2024 and is expected to begin operations by end‑June 2025. Initially assembling CKD kits with annual capacity of 50,000 vehicles, the plant plans to scale up to 150,000 units/year.

This facility, supported by a planned investment of up to US $2 billion (initial US $500 million), will generate around 3,000–3,500 jobs. VinFast is also exploring setting up a second plant in Andhra Pradesh for batteries and vehicles.

By launching the VF 6 and VF 7 with local production, VinFast expects to price its SUVs far more competitively than fully imported models, breaking into the ₹18–35 lakh segment—within reach of many aspiring EV buyers.

Consumer Choice and Competition

• Price-sensitive buyers may favor VF 6 or VF 7 for their domestic assembly, refundable booking policy, and strong tech features.
• Affluent, premium EV enthusiasts may gravitate towards Tesla Model Y for brand prestige, advanced software, and early-access appeal, despite high cost.
• Tesla’s entrance also exerts pressure on established luxury ICE and EV brands like Mercedes-Benz, BMW, and Audi, while VinFast challenges mid-premium offerings from Mahindra EV, Tata Nexon EV, or BYD twins.

Challenges and Opportunities Ahead

For VinFast:

• Must deliver on launch timing and quality, ensuring local plant readiness.
• Expand service and charging infrastructure, securing consumer confidence.
• Build brand awareness vs entrenched rivals.

For Tesla:

• Needs to manage steep import duties, which elevate pricing.
• May need to launch India-specific financing schemes or local assembly to reduce prices long‑term.
• Must navigate regulatory and infrastructure constraints, especially regarding charging and after-sales support.

What Lies Ahead?

• VinFast vehicles are expected to land in August 2025, aligned with plant inauguration and first deliveries.
• Tesla deliveries will also begin in Q3 2025, with potential expansion of models and showrooms to Delhi and other major cities soon after.
• Both players are likely to expand networks and refine product offerings over time. VinFast may unveil more models (like VF 3, VF 9) down the line tailored for India.

Long-Term Implications for the Indian EV Ecosystem

• Tesla’s entry boosts investor confidence in India’s EV ambitions.
• VinFast’s local plant and aggressive dealership rollout could accelerate EV adoption in the ₹20–35 lakh range.
• Competition may stimulate charging infrastructure expansion, government incentives, and consumer awareness.
• Indian OEMs will need to respond with innovation and affordability to retain market share as global brands move in.

Conclusion

The concurrence of VinFast opening bookings and Tesla launching in India on July 15, 2025, marks a pivotal moment. VinFast bets on value, localization, and range-focused SUVs; Tesla leans on brand and premium tech. For Indian EV consumers, the choice between home-assembled, competitively priced models and globally reputed luxury offerings is opening up for the first time.

Did you know?

• VinFast’s token booking of ₹21,000 is fully refundable—giving buyers flexibility without financial commitment .
• Tesla’s full self-driving (FSD) option may be limited in India due to legal restrictions, even if purchased for ₹6 lakh extra .

Final Thoughts

July 15, 2025, is likely to be remembered as one of India’s most significant EV milestones. From Vietnamese vans to American innovations, EV competition is heating up—and consumers are the big winners.