Overview
- A July memo instructed suppliers to hold all development work on the VF3, VF6 and VF7 and to provide detailed breakdowns of tooling, engineering and material costs already spent.
- VinFast says it will continue assembling and selling the VF6 and VF7 from completely knocked down kits at its Thoothukudi plant while it reviews deeper local manufacturing plans.
- The pause reflects the company falling short of its planned costs for developing parts in India, which prompted the temporary halt to control development spending.
- Suppliers face immediate financial risk because VinFast has asked for documentary proof of investments to decide on possible payments or reimbursements.
- The move comes as VinFast secures approval for Phase 2 of the Thoothukudi plant and says it will shift toward designing India-specific EVs to improve pricing and local sourcing; the company has sold about 10,000 cars in India so far.