VinFast is actively engaging with multiple battery cell makers in India, including Tata-Gotion, as part of a strategic move to increase the proportion of locally sourced components in its EVs. The discussions are aimed at building a stronger supply chain within the country and reducing reliance on imports.
Company executives have acknowledged that VinFast’s current component localisation in India is relatively modest, estimated at about 15 per cent of the total vehicle parts. Increasing this figure is a key priority for the automaker, which has openly stated its ambition to reach around 40 per cent localisation in the near future.
One of the challenges in scaling up local sourcing has been VinFast’s decision not to participate in India’s FAME subsidy programme. That scheme requires manufacturers to meet certain localisation thresholds to access financial incentives — a condition VinFast chose to avoid, preferring more flexibility in how it builds its supply chain.
VinFast has already made strides in establishing its presence in India’s EV market, having launched the VF6 and VF7 electric SUVs in 2025. The company has cumulatively sold more than 1,000 units of these vehicles in India and plans to introduce additional passenger models later this year as it expands its product lineup.
Alongside talks with battery manufacturers, VinFast is also expanding its manufacturing footprint in India. The company has invested $500 million in an EV production facility in Thoothukudi, Tamil Nadu, which is part of a broader $2 billion investment plan focused on building a strong local presence and supply chain.
Industry observers note that several other global automakers are also pursuing battery supply partnerships in India as the market develops. Hyundai has teamed up with Exide Industries, while companies like Ather Energy and Piaggio have worked with Indian battery firms to support local production. Such efforts reflect wider momentum in strengthening India’s EV ecosystem.
