An informed source mentioned that VinFast, currently establishing a factory in Tamil Nadu, has started discussions with two companies aiming to secure some of the necessary funds through a local partner. Additionally, the company views a local partnership as beneficial for managing the regulatory landscape and labour relations and for creating a reliable and cost-efficient network of component suppliers.
Vietnamese electric vehicle manufacturer VinFast is currently engaging in discussions with Hyderabad-based Megha Engineering & Infrastructures (MEIL) and the Adani Group, exploring potential partnerships before the launch of its cars in India. According to a source close to the negotiations, VinFast, which is setting up a production facility in Tamil Nadu, initiated these talks to secure part of the needed investment through local collaborators. The company believes that having domestic partners will aid in navigating India’s regulatory framework and labour relations and in building a dependable, cost-effective supply chain for components. Despite these discussions, there has been little progress, and no firm decisions have been made regarding a joint venture with either company.
When approached for comment, a VinFast spokesperson in India did not confirm these developments but acknowledged that the company is continually exploring partnerships globally. The spokesperson emphasised that as a global entity, VinFast examines potential collaborations across various sectors and nations, though they refrain from commenting on market speculations.
Megha Engineering, known for manufacturing buses under the Olectra brand in collaboration with China’s largest electric vehicle maker BYD, had previously attempted a joint venture with BYD to manufacture cars. This proposed partnership, which included a potential $1 billion investment from BYD, failed to receive government approval. A Megha spokesperson declined to comment on the current talks with VinFast, though insiders mention that discussions have been initiated and are under evaluation.
The Adani Group, another potential partner approached by VinFast, has not confirmed participation in talks, and inquiries to the company have remained unanswered.
VinFast’s ambitious plan includes launching electric cars from its Tamil Nadu factory in 2025 and presenting its models at the Bharat Mobility Expo next year. Initially enthusiastic about India’s new EV policy, which offers limited-period import tax breaks for significant investors, VinFast is now reconsidering its $500 million commitment to the policy, apprehensive about potential stipulations that might not acknowledge certain types of investments.
