Tesla and VinFast India Launch:
July 15, 2025, marks a monumental day for India's automotive scene as Elon Musk’s Tesla and Vietnamese car manufacturer VinFast join hands to kick off their ventures in the country. In the world's third-largest car market, Tesla will reveal its inaugural showroom at Mumbai's Bandra Kurla Complex (BKC). Meanwhile, VinFast will simultaneously commence bookings for their electric SUVs in India.
This unique convergence sees American and Vietnamese automotive giants coming together in India on the same day. Tesla, being one of the globe's largest electric car companies, stands alongside VinFast, a rapidly emerging manufacturer. Tesla's opening of its first showroom—or experience center—marks a pivotal moment, whereas VinFast has already partnered with 32 dealerships in 27 cities across the nation, with car bookings starting today.
Source: aajtak
Discussing Tesla, Elon Musk views India as pivotal for the company. According to the European Automobile Manufacturers Association (ACEA), Tesla's May sales in Europe fell for the fifth consecutive month, with many turning to more affordable Chinese cars. Sales dropped to 13,863 units in May, a decline of 27.9% from last year. Hence, the Indian market becomes crucial for Musk.
Before entering India, Musk cited high import duties, pressing for reduced taxes on incoming electric cars. Initially, talks of setting up a Tesla electric vehicle plant in India emerged but met roadblocks. While complete vehicle imports faced high tariffs, India’s revised electric vehicle policy now offers a respite. Previously, such vehicles attracted 110% import duty, which was reduced to 70% for luxury cars above $40,000 (approximately ₹35 lakh) in the 2025-26 budget.
For vehicles under $40,000, the new policy includes customs relief up to 15%, contingent on specific manufacturer commitments, including a ₹4,150 crore ($486 million) investment within three years and starting domestic production within five years. Companies can import 8,000 electric vehicles annually under reduced customs duty.
Source: aajtak
In preparation for its Indian launch, Tesla has set up its first 4,000 square-foot showroom in Mumbai. The initial shipment of five China-manufactured cars has also arrived. India's entry into the South Asian market elevates the Tesla landmark, offering locals the chance to experience their cars firsthand.
Recently, Tesla announced job vacancies in supply chain, IT, operations, and more across Mumbai, Pune, and Delhi. Reports claim the next showroom will likely open in Delhi following Mumbai.
While it's challenging to confirm prior to official announcements, Tesla submitted homologation applications for its Model Y and Model 3 in March. A vital pre-launch step, this ensures compliance, regardless of manufacturing origins. Expectations are high for these two models to be introduced in India, with Model Y rumored to debut first. Equipped with a robust battery, the mid-size SUV offers a range of up to 574 km per charge. Tesla may also showcase Model 3 and Model X here, with the latter being notably pricier.
Though aligned with India’s electric policy, Tesla cars might remain high-priced, facing a 70% import duty. Some forecasts set starting prices between ₹60-65 lakh. However, as current models are imported, Tesla might adapt strategy based on demand, working on an affordable model for India is whispered.
Source: aajtak
VinFast's parent company Vingroup ranks among Vietnam's leading industrial conglomerates, engaging across technology, real estate, retail, healthcare, and hospitality. Established by Pham Nhat Vuong in 1993 initially as a food manufacturing entity, they launched VinFast in 2017, starting vehicle production in 2021. Although VinFast enters the Indian market alongside Tesla, business strategies significantly differ.
Contrary to Tesla’s CBU route, VinFast will assemble and sell cars locally, benefiting price points. The company has already initiated 32 showrooms in 27 major cities. Starting tomorrow, VinFast will open bookings for electric SUVs VF6 and VF7, strategically placed in the market.
Last year, VinFast commissioned an electric car plant in Tamil Nadu, investing $2 billion (around ₹1,66,21 crore). Situated on a sprawling 400-acre Tamil Nadu State's SIPCOT Industrial Estate, construction began last year and is nearing production readiness.
The next five years anticipate $500 million investments, creating around 3,500 jobs as the Thoothukudi plant targets an annual production capacity of 150,000 units, aiming at 50,000 units in the initial year.
Source: aajtak
VinFast has entered dealerships in cities like Delhi, Gurugram, Noida, Chennai, Bengaluru, Hyderabad, Pune, Jaipur, Ahmedabad, Kolkata, Kochi, Bhubaneswar, Trivandrum, Chandigarh, Lucknow, Coimbatore, Surat, Kozhikode, Visakhapatnam, Vijayawada, Shimla, Agra, Jhansi, Gwalior, Vapi, Vadodara, and Goa.
Recently, VinFast showcased its VF6 and VF7 electric cars across prominent Indian cities, creating waves in shopping malls of Delhi, Chennai, Hyderabad, Ahmedabad, Pune, Gurugram, Vijayawada, Bengaluru, Kochi, Lucknow, and Thiruvananthapuram.
Concerning VF6, its international model measures 4,241 mm long, 1,834 mm wide, and 1,580 mm tall, featuring a 2,730 mm wheelbase, promising a spacious cabin. A battery pack of 59.6 kW enables a 480 km driving range per charge, with increased variant motors delivering 201 hp and 310 Nm torque. It comes with both 17- and 19-inch wheels.
Source: aajtak
On the other hand, VinFast VF7 measures 4,545 mm in length, 1,890 mm in width, and 1,635 mm in height, slightly larger with a 2,840 mm wheelbase. It offers two battery packs (59.6kWh and 70.8kWh), delivering a driving range of up to 498 km per charge. Distinctive features include an AWD variant with eight airbags.
Although precise pricing remains unconfirmed before launch, experts estimate VF6 might be priced between ₹25-30 lakh, and VF7 from ₹45-50 lakh. It will be fascinating to see how their pricing stands amidst fierce electric vehicle competition from Tata Motors, Mahindra, and MG Motors in India.
