Vietnamese automaker VinFast has launched its first electric vehicles in India. The company announced on Saturday that its most affordable compact SUV, the VF6, will start at 1.6 million rupees (approximately $18,127).

The company will also introduce the mid-size SUV VF7, with a starting price of around 2 million rupees (approximately $22,659). This represents roughly one-third the price of Tesla Motors' Model Y in India.

VinFast stated that the pricing announced on Saturday is indicative and applies only to the first 1,500 vehicles sold or those sold before November 30, whichever comes first.

The company's pricing strategy and ability to maintain market share could prove to be a significant test, as it becomes the first foreign pure electric vehicle manufacturer to invest in building a factory in India, with its vehicles launching just weeks after Tesla Motors. The company's $500 million investment in a factory in southern India will enable it to avoid the hefty 70% import tariffs that Tesla Motors faces.

VinFast's factory in Thoothukudi, Tamil Nadu, began operations in July with an initial capacity of 50,000 vehicles per year. The company plans to increase annual production to 150,000 vehicles.