Vietnamese electric vehicle manufacturer VinFast has commenced operations at its first manufacturing plant in India. The plant is located in Thoothukudi, a coastal district in Tamil Nadu. This project represents an investment of approximately $500 million, equivalent to ₹4,200 crore. The company aims to cater not only to the domestic market but also to prepare this unit for exports.
150,000 Electric Vehicles to be Produced Annually
VinFast has set an initial annual production capacity of 50,000 vehicles for its plant. However, the company plans to increase this to 150,000 units in the coming years. This plant will manufacture the company's popular premium electric SUVs – VF6 and VF7. These vehicles will be shipped to India as well as other countries.
India to Gain Share in Global Exports
VinFast officials have already clarified that they are developing India as a global export hub. The plant will supply vehicles to markets such as Indonesia, the Philippines, Nepal, Mauritius, Sri Lanka, and Africa. This means that VinFast vehicles will be exported worldwide from India.
Company Has Ambitious Global Goals
VinFast delivered a total of 97,399 electric vehicles in 2024. The company now aims to increase this figure to 200,000 units by 2025. In the first half of 2025 alone, the company has already sold 72,100 units. This clearly indicates that the company has its sights set on global markets.
VinFast has also begun to rapidly expand its dealership network in India. The company has opened its first showroom in Surat and plans to open 35 dealerships in 27 cities by the end of 2025. Additionally, the company may start selling its vehicles this month itself. Price announcements are expected soon.
Strong Focus on 'Make in India'
VinFast is placing special emphasis on 'Make in India' at its Indian plant. The company is establishing vendor units in industrial parks to strengthen the local supply chain. This will increase the number of local components in vehicles manufactured in India and reduce production costs.
Vietnamese Plastics Company Also Coming to India
A major Vietnamese plastics manufacturing company associated with VinFast's parent group is also preparing to set up a unit in India. The aim is to manufacture as many components as possible in India itself. This will boost local manufacturing and create employment opportunities.
This plant will be fully equipped with state-of-the-art technology. Automation-based production lines will be installed to accelerate production and ensure no compromise on quality. The company says that production capacity will be increased every year to meet demand.
Cooperation from the Tamil Nadu Government
VinFast is receiving full cooperation from the Tamil Nadu government in this project. The state government views this investment as a major opportunity because it will not only boost EV manufacturing but also create employment for thousands of people. The state government has also taken steps to improve industrial infrastructure and logistics.
EV Manufacturing in South India to Receive a Boost
VinFast's plant has the potential to become a major center for the EV industry in South India. Tamil Nadu, which is already considered an automobile manufacturing hub, can now play a leading role in the production of electric vehicles as well. Several other foreign companies are also planning investments in this direction.
