Vietnam’s leading EV maker VinFast has officially opened its first electric vehicle manufacturing plant in India, located in Thoothukudi, Tamil Nadu. This marks the first major milestone under its massive ₹16,600 crore ($2 billion) India investment plan, positioning the company strongly for expansion across Asia and emerging export markets.
The newly inaugurated ₹4,100 crore ($500 million) facility will initially produce 50,000 EVs annually, with expansion potential up to 1.5 lakh units. VinFast chose Tamil Nadu after assessing 15 locations in six states, citing the region’s strong infrastructure, skilled workforce, and easy port access as major advantages. The facility is expected to serve not only India but also export markets in South Asia, Africa, and the Middle East.
State Industries Minister T.R.B. Raaja said the plant would spark a new industrial ecosystem in southern Tamil Nadu, supporting India’s ambitions to become a global EV manufacturing hub.
This move is part of VinFast’s larger pivot to Asian markets, after facing challenges in the US and Europe. The company has also announced a ₹1,650 crore ($200 million) EV assembly plant in Indonesia and is expanding operations to Thailand and the Philippines.
In 2024, VinFast sold almost 97,000 EVs – three times more than in 2023 – with 90% of sales in Vietnam. Now, it’s targeting 2 lakh global deliveries by 2025. The Indian EV market is huge, with over 60 lakh EVs sold in 2024, though passenger EVs accounted for only 2.5% of the total.
VinFast will launch its VF6 and VF7 electric SUVs in India later this year and is targeting both affordability and tech-savvy buyers. It has already signed agreements to open 32 dealerships across 27 Indian cities and will set up showrooms, service centers and battery recycling units.
According to JMK Research co-founder Vivek Gulia, VinFast’s success will depend on pricing and how well it builds trust in its brand and technology.
VinFast’s Asia CEO Pham Sanh Chau confirmed that the company is in talks with several Indian suppliers for components, charging infrastructure and repair services. Some suppliers may even shift operations to India to support the plant. The company has also got early international orders from Sri Lanka, Nepal and Mauritius, indicating strong export potential.
VinFast will benefit from India’s EV-friendly policies – tax breaks and land subsidies to discourage imports and promote local manufacturing. Unlike Chinese EV brands which face geopolitical issues in India, VinFast is coming in with a clean slate and policy support.
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Source: Moneycontrol
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