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Tesla and VinFast Enter Indian EV Market: A New Era Begins

Tesla and VinFast Enter Indian EV Market: A New Era Begins

July 15, 2025, marked a historic day for the Indian automobile sector, as two global electric car companies simultaneously announced their entry into the country. On one hand, Elon Musk's Tesla opened its first showroom in Mumbai's BKC area, while on the other, Vietnam's VinFast began booking its electric cars across India.

This special occasion has given a new direction to India's electric vehicle market, where a giant like Tesla and a rapidly emerging company like VinFast are going head-to-head.

How Tesla's journey in India began

Tesla, which had been in the news for a long time, finally launched its first experience center, that is, an experience showroom, in Mumbai's Bandra-Kurla Complex. The company also showcased the first batch of some units brought from China in this showroom spread over approximately 4000 square feet.

Tesla had been trying to enter India for a long time, but the company was facing difficulties due to high import duties. However, after getting relief from the new EV policy of the central government, this company of Musk has now entered the Indian market.

Which cars might Tesla launch in India

In March 2025, Tesla had started the homologation process for two cars in India: Model Y and Model 3. In this situation, it is believed that the company will start with the Model Y, which is a mid-size electric SUV and claims to offer a range of around 574 kilometers on a single charge.

In addition, there are also speculations about the launch of Model 3 and Model X, but the price of Model X may be too high for the Indian market.

What will be the impact on the price

Tesla is currently bringing cars to India via CBU (Completely Built Unit), on which import duty of up to 70 percent is levied. In this situation, the starting price may be around 60 to 65 lakh rupees.

However, there is also news that the company is working on an affordable model for India, so that the middle-class population here can also be targeted.

VinFast's preparations are different from Tesla's

While Tesla is entering via the CBU route, VinFast has entered the field through a local assembling model in India. This Vietnamese company is already ready with 32 dealership partners in 27 cities and has started booking for two electric SUVs named VF6 and VF7.

VinFast's parent company, Vingroup, is one of the largest companies in Vietnam, whose business is spread across technology, healthcare, retail, and real estate.

VinFast cars will be made in India

VinFast has established an electric vehicle plant in Thoothukudi, Tamil Nadu, which will have a production capacity of approximately 1.5 lakh units per year. The company has planned to invest around $2 billion in this project.

This plant is spread over 400 acres of land in the SIPCOT Industrial Estate and has set a production target of 50,000 units in the initial phase.

What are VinFast's VF6 and VF7 cars like

The VinFast VF6 is a compact electric SUV, which is equipped with a 59.6 kWh battery and offers a range of approximately 480 kilometers. Its high variant delivers a power of 201 hp and a torque of 310 Nm.

The VF7 is a larger SUV, which comes with two battery packs (59.6 kWh and 70.8 kWh). Its range is approximately 498 kilometers and its high variant supports all-wheel-drive. The special thing is that the VF7 also offers 8 airbags, smart features, and modern safety technology.

What could be the potential prices of VinFast

According to experts, the starting price of VinFast's VF6 could be around 25 to 30 lakh rupees and the price of VF7 could be between 45 to 50 lakh rupees. However, the company has not yet announced the official price.

It is believed that due to local assembling, the prices of VinFast will be a little more affordable compared to Tesla, due to which customers of the mid-segment can also be attracted towards these cars.

In which cities has VinFast opened showrooms

VinFast has launched its showroom and dealership network in 27 cities across the country, including Delhi, Bangalore, Chennai, Kolkata, Pune, Hyderabad, Ahmedabad, Jaipur, Kochi, Lucknow, Chandigarh, Gwalior, Surat, and Goa.

The company aims to establish a b presence in the market within the first year and reach out to more and more cities.

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