VinFast may look to assemble electric vehicle batteries in India as part of its broader localisation strategy, a senior company official said, signalling a deeper long-term commitment to the domestic market. The move, if firmed up, would also mark a significant step towards indigenising its product portfolio for India.

Responding to a query by Fortune India, VinFast India CEO Tapan Ghosh said the company is actively evaluating opportunities to localise key components, including batteries, which account for a substantial share of EV costs. “Localization is something we are working on. Right now it is 15% and we will accelerate our sourcing from local vendors and also tie up with partners. These are the things which are work in progress. Battery contributes around 30% of the overall cost. That is also something we are looking at,” he said.

Battery localisation, cost play under evaluation

Industry estimates broadly peg battery packs at around 30–40% of an electric vehicle’s total cost, underscoring the importance of localisation for improving affordability and margins. Ghosh added that VinFast currently imports batteries from its parent’s facility in Vietnam but may explore local assembly in the future, without committing to a timeline.

“The plans are still on the drawing table and are yet to be firmed up,” he clarified.

The localisation push comes alongside VinFast’s broader scale-up in India, backed by investments in its Thoothukudi manufacturing facility, which is being developed as a global production hub with a capacity of 50,000 units per annum. The plant is expected to cater to both domestic demand and exports over the long term, positioning India as a key node in the company’s global EV strategy.

Dual MPV strategy targets private, fleet segments

VinFast is sharpening its India play through a dual-pronged product strategy spanning personal and commercial mobility, while avoiding rigid sales targets and instead aligning production with demand. At the centre of this approach are the VF MPV 7 and the upcoming Limo Green—two products built on the same platform but aimed at distinct customer segments.

The VF MPV 7, priced at ₹24.49 lakh (ex-showroom), marks the company’s entry into the premium electric MPV segment, offering a 150 -kW powertrain and an ARAI-certified range of 517 km. While it is targeted at private buyers, the Limo Green is designed exclusively for fleet operators with a lower price point and a more utilitarian configuration.

“It will be priced lower than the MPV7,” Ghosh said, adding that the model has a “different identity altogether” for commercial applications and is ARAI-certified for fleet deployment. The company has already begun dispatching Limo Green units to dealerships, with sales expected to commence in the coming weeks. “There is a company called GSM, which is part of the Vingroup ecosystem. They have their own plans, which will be announced later,” he added, hinting at a broader mobility play.

₹10–14 lakh EVs, network expansion to widen reach

Beyond its current lineup, VinFast is evaluating expansion into the ₹10–14 lakh EV segment to widen its addressable market, while maintaining a premium-first approach and ruling out sub-₹10 lakh offerings in the medium term. The company has already launched VF6 and VF7 in the ₹17–28 lakh range and is assessing additional segments below ₹16 lakh and above ₹24 lakh as part of its future pipeline.

As part of its scale-up strategy, VinFast plans to introduce two new products every year and will also enter the electric two-wheeler space in India in the second half of the fiscal. To support this growth, it is expanding its retail footprint to 75 showrooms and over 230 service workshops, including third-party partnerships, with a focus on tier-2 and tier-3 markets. The company is also gearing up to foray into the electric two-wheeler (E2W) market.

The company is also investing in charging infrastructure through its affiliate VGreen, which has deployed around 300 charging stations and is exploring expansion across fuel outlets in partnership with HPCL.

With EV penetration in India still at 4–5%, VinFast sees steady headroom for growth. “India is a value-conscious market. It’s not just about price, but total cost of ownership and long-term value—and that’s where we believe we stand out,” Ghosh stated.