Vietnamese electric vehicle manufacturer VinFast has officially inaugurated its first EV production facility in India, located in Thoothukudi, Tamil Nadu, as a part of its larger $2 billion investment plan in the country. The newly launched $500 million factory will initially produce 50,000 electric vehicles annually, with plans to scale up capacity to 150,000 units. Positioned as a future export hub, the plant will serve markets across South Asia, the Middle East, and Africa.
“This project will seed an entirely new industrial cluster in southern Tamil Nadu,” stated State Industries Minister T.R.B. Raaja, emphasizing the project’s significance in advancing India’s manufacturing and export capabilities.
Tamil Nadu was selected for this landmark project over 15 other sites in six states, primarily due to its robust infrastructure, skilled workforce, and strategic port access. The plant marks VinFast’s continued shift toward Asia-focused growth, following operational hurdles in the U.S. and European markets. The company has recently expanded into Indonesia, Thailand, and the Philippines, with India being a key pillar in its regional strategy.
India’s electric vehicle market has seen exponential growth, with passenger EV sales surging from 1,841 in 2019 to over 110,000 in 2024. With the Indian government aiming for electric vehicles to account for one-third of all car sales by 2030, VinFast is entering at a promising inflection point.
VinFast’s Asia CEO, Pham Sanh Chau, shared that discussions are ongoing with component suppliers, some of whom are considering relocating operations to India to support the new facility. Additionally, the company has already signed agreements for 32 dealerships across 27 Indian cities, and plans to launch its VF6 and VF7 SUV models later this year.
“VinFast can succeed here if it gets the pricing right and builds trust around its technology,” said Vivek Gulia JMK, co-founder of JMK Research, pointing to the importance of competitive strategy in India’s dynamic EV sector.
With this launch, VinFast signals a major step toward embedding itself in one of the world’s fastest-growing EV markets while contributing to India’s larger clean mobility goals.
