VinFast India CEO Tapan Ghosh says the electric vehicle industry will continue to need government support to accelerate EV adoption and drive long-term growth.
India’s electric vehicle (EV) market is expanding rapidly, but VinFast India CEO Tapan Ghosh believes it is still too early to declare 2026 the industry’s breakthrough year.
Although EV sales continue to climb and charging infrastructure is expanding, Ghosh says the sector will require continued government support before it reaches mass adoption.
Speaking to Forbes India, the VinFast India chief said the market is making steady progress, but current volumes remain too small to signal a true inflection point.
EV Growth Is Strong, But Not Yet a Turning Point
India’s passenger EV penetration reached 7.7% in June, crossing the 5–6% threshold that many analysts associate with the beginning of mass adoption.
However, Ghosh believes the milestone alone does not tell the full story.
“EV sales are growing, but overall volumes are still a small fraction of the roughly four lakh vehicles sold every month,” he said.
According to him, India still needs supportive government policies, particularly those focused on encouraging consumer demand rather than only manufacturing incentives.
Measures such as lower GST rates, road tax exemptions, and purchase incentives remain important to accelerate adoption.
VinFast Climbs Into India’s Top Five EV Brands
VinFast entered the Indian market in August 2025 and has quickly established itself among the country’s top five electric passenger vehicle manufacturers.
The Vietnamese automaker has overtaken several established competitors, including Hyundai, while expanding its presence through a combination of competitive pricing and ownership benefits.
Ghosh attributes the company’s early success to understanding Indian customer preferences before launching its products.
VinFast introduced the VF6 and VF7 SUVs with what it describes as a “mass-premium” positioning, supported by three years of free charging, three years of complimentary maintenance, a 10-year battery warranty, attractive exchange offers, and guaranteed residual values designed to reduce concerns around EV resale prices.
Investing Early Instead of Testing the Market
Unlike several global manufacturers that entered India through imports, VinFast decided to establish local manufacturing from the outset.
The company has already invested $500 million toward its planned $2 billion investment in India and is building a manufacturing plant in Thoothukudi, Tamil Nadu.
Ghosh said India was always viewed as a strategic long-term market rather than a short-term opportunity.
When VinFast committed to the investment in late 2023, India was selling around 7,000 electric cars per month. Today, monthly EV sales have increased to more than 31,000 units, reinforcing the company’s decision to localize production early.
He said delaying manufacturing would have slowed supplier development, localization efforts, and dealer expansion.
Localization Remains a Priority
VinFast currently sources roughly 15% of its components locally in India.
The company plans to steadily increase localization over the coming years, following the approach it adopted in Vietnam, where localization has already exceeded 60%.
Higher local sourcing is expected to reduce production costs, strengthen supply chains, lower logistics expenses, and improve resilience against global geopolitical disruptions.
The Tamil Nadu plant has an annual production capacity of 50,000 vehicles, with additional land available for future expansion if demand continues to grow.
Expanding Beyond Passenger Cars
VinFast is also broadening its business beyond personal vehicles.
Its parent company has already introduced Green Smart Mobility (GSM), an all-electric taxi service, in India, beginning operations in Delhi with around 1,000 electric vehicles.
The company believes increased visibility of EV taxis will encourage more consumers to consider electric mobility while introducing them to the VinFast brand.
The automaker also plans to launch electric two-wheelers in India before the end of the year and intends to introduce two new vehicle models annually as it expands into additional market segments.
MPVs and Tier II Markets Offer New Opportunities
VinFast sees significant growth potential in India’s multi-purpose vehicle (MPV) segment, particularly among larger families seeking practical seven-seat electric vehicles.
Ghosh noted that the segment currently has very few EV options, making it an attractive opportunity for expansion.
The company is also witnessing encouraging demand from Tier II and Tier III cities, where home charging is often easier because more households have dedicated parking or independent homes.
Although metro cities remain the largest markets, VinFast plans to continue expanding its dealer network across smaller towns as EV awareness grows.
Battery Costs Continue to Improve
Falling battery prices are expected to gradually reduce EV ownership costs.
Ghosh said greater production volumes and increased localization will eventually narrow the price gap between electric and internal combustion engine (ICE) vehicles.
He also rejected concerns that EVs have shorter lifespans than conventional cars, pointing to improvements in battery technology and VinFast’s 10-year battery warranty.
According to him, most customers replace their vehicles within five to seven years, meaning battery longevity is becoming less of a practical concern.
Government Support Remains Critical
Despite the industry’s momentum, Ghosh believes India’s EV transition is still in its early stages.
Expanding charging infrastructure, increasing model availability, improving affordability, and maintaining supportive government policies will remain essential if the country is to achieve widespread electric vehicle adoption.
While VinFast is confident about India’s long-term potential, the company expects the transition to be gradual rather than explosive, suggesting that 2026 may be another year of steady growth rather than the EV boom many had anticipated.
Source: Forbes
Tapan Ghosh, CEO, VinFast India; Photo courtesy: VinFast
