- VinFast opens first Indian EV plant in Tamil Nadu; capacity targets 150,000 units/year.
- Actively courting suppliers to relocate to India and boost local component sourcing.
- Plant doubles as export hub with early orders from South Asia and Africa.
Vietnamese electric vehicle manufacturer VinFast has officially opened its first manufacturing facility in Thoothukudi, Tamil Nadu, creating India as a new manufacturing and export site as part of its global expansion. The factory - which is a $500 million investment and has capacity for 150,000 vehicles each year - marks the firm’s first international manufacturing capability in India.
This value represents the first stage of a much larger $2 billion investment commitment from the Tamil Nadu government, which includes an initial $500 million, 5-year investment. At present, the first vehicles to come out of its facility are expected to arrive in Indian showrooms towards the end of August, although pricing and specific launch date have not been revealed.
VinFast’s Asia CEO, Pham Sanh Chau, said the company is communicating with multiple component suppliers to scale up local sourcing, as part of a strategic shift away from reliance on China. Some suppliers are even taking discussions to move production from where they are to the industrial centre in Thoothukudi. A Vietnamese maker of plastic parts was one of the suppliers economically circling Thoothukudi.
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Export orders already were received prior to operation in their factories from Sri Lanka, Nepal, Mauritius among other countries, and therefore from day one the plant may be considered to be a regional export hub. However, VinFast's immediate focus will still be on fulfilling domestic demand in India. Globally, VinFast aims to sell over 200,000 vehicles in 2025, having sold somewhere around 72,100 units in the first half of the year, primarily in Vietnam.
Announcement of products at the 2025 Auto Expo in Delhi prior to its launch in India including the premium VF6 and VF7 SUVs, targeting established players like Tata, Mahindra, Hyundai and BYD, VinFast intends to ramp up local capabilities across their range from vehicles to battery packs and their own powertrains.
The move by VinFast isn’t unusual in and of itself as manufacturers move to diversify their supply chains in the face of geopolitical headwinds, trading challenges with China and increasing costs. By developing local sourcing and export-oriented capacity in India, VinFast is looking to establish a sustainable and competitive position in the emerging EV market in Asia.