VinFast Kicks Off India Journey with ₹4,000 Cr Tamil Nadu EV Plant, Targets 2 Lakh Vehicle Sales by 2025

VinFast, Vietnam’s leading electric vehicle maker, has officially opened its first factory in India, a $500 million facility spread over 400 acres in Thoothukudi, Tamil Nadu. This plant marks its first manufacturing hub outside Vietnam and is a crucial part of VinFast’s broader $2 billion investment plan in India and Asia. Initial assembly operations will focus on the premium VF 6 and VF 7 electric SUVs, with a starting capacity of 50,000 units per year, scalable up to 150,000 based on demand.

More than 3,000 local jobs will be created immediately, with the potential to reach up to 3,500 direct roles and additional indirect employment through supporting industries. The site was chosen for its strong industrial links, local infrastructure, and port access, positioning it as a potential export hub for South Asia, the Middle East, and Africa.

VinFast aims to locally source more components, with plans to onboard suppliers and shift parts of production to India. The company already has initial export orders from countries like Sri Lanka, Nepal, and Mauritius. Partnerships in after-sales, charging facilities, and battery recycling are also underway to support long-term sustainability and service infrastructure.

This strategic move reflects VinFast’s pivot from struggling in Western markets toward Asia, where EV demand is skyrocketing. With India aiming for a one-third EV sales share by 2030, VinFast sees a clear opportunity to compete with established players like Tata and Mahindra by offering locally manufactured EVs designed and priced for Indian customers.