Vietnamese EV Maker VinFast Launches Production in Tamil Nadu

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VinFast Auto, a major electric vehicle (EV) manufacturer from Vietnam, has officially commenced production at its new manufacturing facility in Tamil Nadu, marking its strategic entry into the Indian market. The plant, located in the SIPCOT industrial park in Thoothukudi, is the company’s first in India and its third globally. The move is part of VinFast’s ambitious plan to invest up to $2 billion in the country, with an initial commitment of $500 million over five years.

The new factory, which spans 400 acres, will initially focus on assembling premium electric SUVs, the VF 6 and VF 7, with an annual capacity of 50,000 units. The company has plans to eventually increase production to 150,000 vehicles per year, positioning the plant not only to serve the burgeoning Indian market but also to become a key export hub for South Asia, the Middle East, and Africa. According to VinFast Asia CEO Pham Sanh Chau, the Indian facility is a “pivotal pillar” in the company’s strategy to expand into emerging markets.

The inauguration of the plant comes as India’s EV market continues to grow, driven by government policies and rising consumer interest. VinFast’s entry adds another player to an increasingly competitive landscape that includes domestic giants and international brands. The company has already opened its first showroom in Surat and plans to establish 35 dealerships across 27 cities in India by the end of the year to build a robust retail and service network.

In a move that aligns with India’s “Make in India” initiative, VinFast is also in talks with local component suppliers to localize its supply chain and is emphasizing the creation of an integrated EV ecosystem. This includes partnerships for after-sales services, charging infrastructure, and even battery recycling, with a collaboration already in place with Indian clean-tech firm BatX Energies.

The Tamil Nadu facility is expected to create 3,000 to 3,500 direct jobs, with many more indirect opportunities through its supplier network. The company’s speedy rollout and significant investment underscore its confidence in India as a long-term growth market and a strategic manufacturing base for its global ambitions.