VinFast Auto Ltd., the Vietnam-based EV maker, is reportedly in discussions to secure a loan of up to $200 million from Indian state-owned banks as it prepares to enter the Indian electric vehicle market, Bloomberg reports. The automaker's move into India is part of a larger $500 million investment plan, with the loan potentially structured in rupees or as foreign currency. This marks VinFast's first engagement with Indian lenders as it shifts focus to Asian markets amid challenges in North America and Europe.

Central Bank of India Ltd. and Union Bank of India Ltd. are reportedly in talks with VinFast regarding the loan, as per the sources quoted in Bloomberg's report.

As per the report, the loan's structure may be in rupees or as foreign currency through the external commercial borrowing route. The terms are still under discussion and subject to change.

VinFast intends to inaugurate its plant in Tamil Nadu state on June 30. The company is also finalising its local distribution network. The company plans to open bookings for its VF6 and VF7 models in the coming weeks. Bookings for the VF3, a compact EV, are expected to follow in 2026.

However, the firm has yet to announce pricing for these models in the budget-conscious Indian market.

VinFast's expansion into India is a strategic shift away from North America and Europe, with high logistics costs prompting this change in focus.