Vietnamese electric vehicle (EV) major VinFast on Wednesday threw its weight behind government-led financial incentives, stating that subsidies are a critical catalyst for early-stage adoption in the EV sector. The company urged state governments across India to implement supportive frameworks, pointing to the recently released Delhi EV Policy 2026 as a benchmark for the industry.
VinFast, which is preparing to launch its India operations with a focus on local manufacturing, emphasized that targeted policies significantly lower the entry barrier for consumers.
“So, if the government – be it in two-wheeler or four-wheeler, be it the Central government or State governments gives incentives, it is going to beneficial for the early EV adoption – and it will really help…We are committed for a greener planet, for a greener society and for an overall sustainable ecosystem,” Tapan Ghosh, Chief Executive Officer, VinFast India, told reporters here.
New product
Speaking on the sidelines of the launch of its new product, VF MPV 7, Ghosh said that is why VinFast gave up manufacturing internal combustion engine (ICE) powered vehicles since 2020-21, and only manufacturers EVs, whether two or four-wheeler, even though the penetration is low right now.
“We also know that right now the penetration of EV in two-wheeler is may be around 7 per cent and in four-wheeler it is 4-5 per cent, so there is a big room to catch up…Delhi government’s step is very encouraging because if like Delhi other State governments also does similar things where customers are given that benefit to adopt EV, it is going to benefit all three stakeholders – government on oil import bill, greener society for the public — and customers on running cost and maintenance,” he said.
Talking about the company’s upcoming launch on electric two-wheelers, Ghosh said that VinFast will not launch low-cost electric two-wheelers, and just like its electric cars, the company will launch premium two-wheelers by end of this year.
VinFast is talking to dealers for the electric two-wheelers now, and initially it will bring completely knocked down (CKD) units, same as its four-wheeler EVs, he added.
The company launched VF MPV 7 electric multi-purpose vehicle priced at ₹24.49 lakh (ex-showroom). The new EV in its portfolio is powered by a 60.13 kWh lithium-ion battery that has a range of 517 kilometres on a full charge (ARAI certified), and delivers 150 kW and 280 Nm of torque via front-wheel drive. The battery can be fast charged from 10 to 70 per cent in 30 minutes, the company said.