Vinfast in Talks With Battery Makers in India For Localisation

As Vietnamese electric vehicle maker VinFast looks to strengthen and broaden its electric vehicle offerings in India, the automaker is in talks with multiple battery manufacturers in India, including Tata-Gotion, to localise battery production for its vehicles, according to a senior company official.

"We try to increase our localization; it is very important. Since we didn't join the FAME scheme, we did not commit to a certain level of localization, but certainly, we try our best. At the moment, our localization is around 15%; we need to reach 40% soon. Once we have batteries, localization will increase tremendously. We are trying to tie up with a local battery manufacturer," VinFast Asia Chief Executive Officer Pham Sanh Chau said. 

The plans for increased localization come as VinFast is entering multiple vehicle segments, apart from electric cars, in India. The company started selling its electric cars in India in September 2025 with two models – VF6 and VF7. Cumulatively, it has sold over 1,000 units so far and plans to launch three new products in the passenger vehicle segment. 

Later in the year, VinFast will also enter India's electric two-wheeler and bus markets. The company has announced plans to invest $2 billion (around Rs 16,000 crore) in India, of which $500 million has been invested to set up a production plant for electric cars in Thoothukudi, Tamil Nadu. Recently, the automaker announced the expansion of the plant to manufacture electric buses and two-wheelers.

Most automakers are now looking to tie up with battery manufacturers in India to localise battery supply. For instance, Hyundai Motor India has announced a partnership with Exide Industries, while Ather Energy and Piaggio have tied up with Amara Raja. Suzuki Motor Corp. also has partnerships with Tata Gotion for battery supply.

Companies such as Tata Agratas, Amara Raja, Exide Industries and Reliance Industries have announced plans to set up large-scale gigafactories in the country. But India is at a very early stage of large-scale lithium-ion cell manufacturing, with domestic battery makers still heavily dependent on China for cell imports.

To boost domestic cell production and reduce reliance on China, the government introduced a production-linked incentive (PLI) scheme aimed at encouraging local manufacturing. However, most companies selected under the scheme have missed their timelines for setting up manufacturing facilities, with Ola Electric so far the only player to have begun lithium-ion cell production in India.