EV Maker VinFast To Set Up Plant In India

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With an initial production capacity of 1.5 lakh units per annum, the estimated investment for this facility is Rs 200-250 crore.

Vietnamese electric vehicle (EV) manufacturer VinFast Auto, which competes with global EV leaders like Tesla and China’s BYD, is set to make a significant entry into the Indian market, planning to establish a substantial vehicle manufacturing facility in Thoothukudi, Tamil Nadu. This move positions India as a global manufacturing hub for the automaker.

The top executives of VinFast, including Chairman Phạm Nhật Vượng, are expected to visit India soon to formalise this venture. A Memorandum of Understanding (MOU) is anticipated to be signed between VinFast and the Tamil Nadu government. This agreement will pave the way for a mega manufacturing plant in Tamil Nadu, encompassing both a battery-making unit and a vehicle-manufacturing assembly line.

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The investment for this facility is estimated to be in the range of Rs 200-250 crore, with an initial production capacity of 1.5 lakh units per annum. However, it is expected that the utilisation levels will be less than one-third during the initial phase of the manufacturing operations.

The interest in Tamil Nadu as a location for VinFast’s facility is not surprising, given the state’s growing reputation as a hub for EV manufacturing. Known as the “Detroit of Asia,” Tamil Nadu’s capital city, Chennai, and its surrounding districts are already home to several key players in the EV industry, including Indian two-wheeler manufacturers Ola Electric and Ather.

In October, VinFast stated its intention to build assembly factories in both India and Indonesia, each with an annual capacity of up to 50,000 cars and an initial capital expenditure of up to $200 million. Production at these facilities is expected to commence in 2026. Green SM, an EV taxi operator mostly owned by VinFast’s founder, also has plans to establish a presence in India.

Industry analysts see this development as a strategic fit for VinFast. Puneet Gupta, director at S&P Global Mobility, highlighted India’s growing domestic EV market and its potential as an export hub for neighbouring markets as key factors in VinFast’s decision.

VinFast’s expansion into the Indian market reflects the growing global interest in electric vehicles and the potential of the Indian market as a significant player in the EV industry. With the Indian government’s push towards electrification of vehicles and the growing consumer interest in sustainable transportation, VinFast’s entry into India could be a pivotal development in the region’s automotive landscape.

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