Still undecided on its decision to participate in govt’s new EV policy, Vietnamese electric car maker VinFast is holding separate discussions with Hyderabad-headquartered Megha Engineering & Infrastructures (MEIL) and also Adani group to thrash out a partnership before launching its cars.
A source privy to the talks said VinFast, which is in the process of setting up a factory in Tamil Nadu, had initiated conversations with the two companies as it looks to raise a part of the capital through a local partner. Also, it believes that having a local partner will be helpful in navigating the regulatory environment, labour relations and in development of a credible and cost-effective component supplier base.
“However, not much headway has been made so far. No concrete decision has been reached regarding a joint venture with either of the two companies,” the source said.
When contacted, a spokesperson for VinFast in India did not confirm the development, while conceding that the company continues to explore “collaborations” across countries where it operates. “As a global company, we explore options for collaborations in various fields and countries. However, we don’t comment on market speculations.”
The electoral bond fame Megha Engineering is currently making buses under the Olectra brand name with technical support from China’s largest electric vehicle maker BYD. It has a factory for buses on the outskirts of Hyderabad.
Interestingly, Megha’s attempt to form a JV for cars with BYD, where the Chinese company wanted to invest $1 billion in India, was not approved by govt. When contacted, a spokesperson for the company refused to comment. However, sources within the group said, “They (VinFast) has approached us and initiated discussions. We are still evaluating the proposal and have not confirmed anything yet.”
The Adani group did not confirm the talks, though sources said VinFast had approached the diversified group for a partnership. A questionnaire sent to the company did not get any response.
VinFast plans to roll out electric cars from its factory in Tamil Nadu in 2025 and will showcase its vehicles at Bharat Mobility Expo early next year. The company was initially believed to be enthusiastic about the new EV policy, which promises a limited-period import tax breaks on cars for companies committing $500 million for India factory.
However, with its plans for a factory at an advanced stage, it is now developing a cold feet in committing $500 million towards the EV policy, especially in view of potential riders that may not recognise certain investments under different heads.
