VinFast’s India Sales Surge, But Can It Win Beyond Green SM Fleet?

By Shubhangi Bhatia

What?

The newest electric vehicle (EV) maker in the market VinFast, has crossed 7,000 retail vehicle sales in India just eleven months after entry, vaulting into the country's top five, behind only Tata Motors, Mahindra & Mahindra, JSW MG Motor, and Maruti Suzuki.

The Vietnamese automaker now runs 60 dealerships, assembles locally at its Thoothukudi plant in Tamil Nadu, and sells three models for retail buyers, including the VF 6, VF 7, and VF MPV 7.

But a closer look shows roughly a quarter of its monthly sales come from Green SM, a captive ride-hailing fleet backed by VinFast's own promoter, meaning organic retail demand is growing, but slowly.

Meanwhile, a small but vocal set of early buyers is reporting motor faults, glitchy infotainment, and patchy spare parts availability at service centres. Take Piyush Khadgi in Nagpur, for example. Just 15 days after buying his VF 6, a motor fault left his car stuck at the dealership for a month. Khadgi's isn't the only case.

Why?

VinFast entered at a moment when India's EV penetration was still around 4%, and legacy giants like Hyundai and Maruti have barely expanded their EV lineups.

GlobalData's Vivek Sharma told The Core that the company has entered "at an opportune time," adding that Indian consumers could respond well to VinFast as it is feature-rich and comes with competitive pricing.

Its fleet-first approach with Green SM also fills a vacuum left by BluSmart's shutdown, a move that industry expert Avik Chattopadhyay calls a smart play, since it's a low-risk way to test their technology and vehicles on Indian roads.

Backed by a committed $2 billion investment, India is central to parent Vingroup's ambition of replicating its playbook across other developing countries.

Why It Matters

Now, the question isn't whether VinFast can post volume growth; it is whether those numbers can survive the shift from captive fleet sales to individual retail trust.

Chattopadhyay suggests going disruptive. If a repair takes longer than 72 hours, VinFast should take the disruptive step of simply replacing the vehicle, because in a market where trust, once broken, is very hard to win back, aftersales service can't be an afterthought.

Analyst Gaurav Vangaal agrees that VinFast must "treat Indian consumers with the same seriousness as its global buyers," since early impressions are hard to reverse.

With JSW Motors readying its first launch, and Mahindra, Tata, and Hyundai all looking to expand EV portfolios, VinFast will need to convert curiosity into loyalty faster as competition intensifies, especially as it eyes a bold, simultaneous push into two-wheelers by year-end.

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$16.68 billion

That’s how much Meta Platforms agreed to pay to settle claims brought by states across the US alleging Facebook and Instagram were designed to addict children, misled consumers about safety, and improperly collected children's personal data, court papers show, Reuters reported.

Catch Up Quick: The settlement was reached during a California federal trial over claims brought by 29 states, averting a major test of allegations that social media harmed young users.

Meta also agreed to introduce changes for teenage users nationwide, including daily usage limits and nighttime blocks.

The company denied wrongdoing in agreeing to settle, and shares rose 4.4% in pre-market trading.

Background: The trial covered claims from California, Colorado, Kentucky and New Jersey under state consumer protection laws, alongside claims from 29 states that Meta violated the federal Children's Online Privacy Protection Act.

Ahead of trial, Meta said states were seeking up to $1.4 trillion in penalties, though states had suggested a figure closer to $200 billion.

 Meta, along with Snap, Alphabet's YouTube and ByteDance's TikTok, still face thousands of related lawsuits nationwide.

India Cuts Russian Crude Purchases

Indian refiners are scaling back purchases of Russian crude after buying at elevated levels, as Ukrainian attacks on Russian refineries and Black Sea ports disrupt export flows, Bloomberg reported.

Imports are expected to fall to around 2 million barrels a day this month, down from a July high of 2.8 million, reflecting lower Russian export availability, rising Chinese competition, and post-maintenance demand shifts.

Catch Up Quick: Processors including Indian Oil, Hindustan Petroleum, and Mangalore Refinery are turning to alternative suppliers in West Africa, the Americas, and the Persian Gulf, despite Strait of Hormuz restrictions from the US-Iran conflict.

Setting: Russia's overseas shipments dropped to roughly 3.5 million barrels a day from over 4 million in July. India and China, typically buying different Russian grades, could compete for discounted barrels as the market tightens.

FMCG Volumes Slow Down

FMCG volumes grew 5.2% in the April-June quarter, according to Worldpanel by Numerator, as reported by The Economic Times.

While that outpaced the 3.6% growth in the same period last year, it missed the 5.4% expansion recorded in the previous quarter, a sequential slowdown that could extend into July-September as a weak monsoon and West Asia-driven inflation weigh on demand.

Context: Urban India felt the slowdown more acutely, with volume growth easing to 5.2% from 6.4% the previous quarter.

Rural growth actually accelerated to 5.3% from 4.4%, but the impact of weak rains is yet to fully feed through.

The rain deficit this monsoon season stood at 13% below the long-period average as of August 19, according to the India Meteorological Department.

Forecast: Marico MD Saugata Gupta told ET that high single-digit volume growth remains sustainable, conditional on no further shocks from the West Asia situation.

But Worldpanel by Numerator's Manoj Menon warned that the rural impact of delayed rainfall will only become visible in the current quarter.

Eggs Feel Ethanol Heat

Eggs, one of India’s cheapest and most accessible sources of protein, are now the latest food item feeling the impact of India’s ethanol push. Egg prices have risen 35-40% over the past year, reaching about Rs 7 apiece at the farm gate and Rs 8.50-9 in retail markets. The reason: poultry farmers are competing with ethanol producers for maize, a key ingredient in chicken feed.

Pivot: India now diverts nearly 17 million tonnes of its 43.4 million-tonne maize crop to ethanol production. That has tightened supplies for poultry feed and pushed maize prices to about Rs 26,500 a tonne, from Rs 14,000 three years ago. Maize accounts for 65-70% of poultry production costs, making the industry particularly vulnerable to price increases.

Future: With egg demand typically rising in winter, poultry executives expect prices to remain firm and potentially climb further. Other factors, including heat stress, mortality and weather disruptions, are also affecting costs.

Rice Avoids Sanctions Fire

Indian rice exporters expect shipments to Iran to continue despite Washington’s latest sanctions on Tehran, saying rice falls under the US humanitarian exception for food and agricultural commodities.

Fast Facts: Iran bought about $810 million of Indian rice in FY26, accounting for nearly 7% of India’s $11.5 billion rice exports. Saudi Arabia, Iraq and the UAE are among India’s other major basmati markets, while non-basmati rice goes largely to countries such as Bangladesh, Benin, Ivory Coast, Guinea and Cameroon.

Flashpoint: The trade has faced disruptions during the Iran war, with payment delays and shipping problems causing shipments to dip sharply at times. But exporters say Iranian demand has held up as buyers prioritise food security.

The latest US crackdown still raises logistical and financial risks. Earlier this week, Washington sanctioned four India-based firms—Portease Partners, Sadashiva Overseas, PP Softtech and Prakrutees Infra Impex—over their alleged involvement in Iran’s petroleum and petrochemical trade. Three of the firms were linked to about $119 million in Iranian petroleum imports, according to the US.

FSSAI Crackdown Continues

The Food Safety and Standards Authority of India (FSSAI) issued notices to JW Marriott and Andaz Aerocity, operated by Juniper Hotels Pvt Ltd, in Delhi on Wednesday, after inspections found serious deficiencies in food safety, hygiene, sanitation, storage and labelling, reported by Economic Times (ET).

Fast Facts: At JW Marriott, inspectors found the hotel was carrying out retail and relabelling activities, including selling products under its own brand name, without the required FSSAI licence endorsement.

Labelling issues included misprinted licence numbers and missing manufacturer addresses, while the FSSAI licence was not displayed on the premises.

Inspectors also flagged cockroaches, fruit flies, particulate matter in drinking water, fungal growth on apples, rotten tomatoes and poor segregation of vegetarian and non-vegetarian food across its kitchens.

At Andaz Aerocity, inspectors found improper food segregation, pest activity, poor sanitation and inadequate food-handler hygiene.

Forecast: Both operators have been directed to take corrective action and submit compliance reports. Further regulatory action will follow under the Food Safety and Standards Act, 2006, based on compliance and sample analysis.

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Foreign Investors Are Still Wary Of India

On Episode 960 of The Core Report, financial journalist Govindraj Ethiraj talks to Shankkar Aiyar, economic journalist and author; Ajay Kedia, metal and commodities expert; as well as Manish Gupta, Deputy Chief Ratings Officer at Crisil Ratings.

• Foreign Investors Are Still Wary Of India

• Will The Government’s Overseas Roadshows For Investments Deliver?

• India Inc May Have Slowed On Capex But It Has Invested Hugely In M&A, Says New Crisil Report

• Gold Prices Are Rising Again, What Are The New Demand And Supply Forces

• Meta Agreed To Pay $16.68 Billion And Make Major Changes ​to Facebook And Instagram