VinFast Tamil Nadu Plant To Open Early In Early 2025


The Vietnamese electric vehicle manufacturer, recognized for its rapid establishment of new facilities, began construction on its integrated EV and battery plant in Thoothukudi, Tamil Nadu, in February 2024. The company has moved up the start of its manufacturing operations to the first half of the calendar year 2025.

VinFast initiated the construction of its integrated EV plant in Thoothukudi, Tamil Nadu, on February 25, 2024. The company is set to expedite construction on the 400-acre site within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate. The Thoothukudi plant, which is VinFast’s third after those in Vietnam and the USA and its second outside its home country, will have the capacity to manufacture 150,000 EVs annually and is expected to create up to 3,500 jobs. Pham Nhat Vuong, CEO of VinFast and Chairman of Vingroup, remains optimistic about the global EV market and has outlined ambitious growth plans, particularly targeting expansion in Asian markets. Known for its swift operational setup, VinFast now plans to commence operations at its India facility six months ahead of its initial schedule in the first half of 2025. Additionally, the company is preparing to start construction of another plant in Indonesia soon.

If the VinFast India plant becomes operational by June 2025, it will have achieved production readiness within 15 months from the groundbreaking date, surpassing the timeline of its primary facility in Hai Phong, Vietnam, which took 21 months. VinFast is rapidly advancing its Indian program, moving from MoU signing to construction start in under two months, marking a record pace for an overseas automaker in India. This move is part of a strategic effort to tap into India’s large automotive market and support both domestic and export sales to South Asian, Middle Eastern, and African markets. Additionally, leveraging India’s robust automotive component manufacturing sector is a critical aspect of VinFast’s strategy to enhance its global supply chain capabilities.

VinFast’s operational efficiency is also evident in its main facility at Cat Hai Island, near Hai Phong, Vietnam. The company built this factory within 21 months of breaking ground in September 2017. The Hai Phong plant, which is highly automated, is set to expand its production capacity to approximately 950,000 EVs per year by 2026.

In the USA, VinFast began constructing its first international EV factory on July 28, 2023, in Chatham County, North Carolina. This plant, with a Phase 1 investment of approximately $2 billion, aims to produce models like the VF7, VF8, and VF9, with a production target similar to the Indian project. Production is scheduled to start in 2025.

In Indonesia, VinFast plans a $200 million investment in an assembly plant with a capacity of up to 50,000 EVs annually. Construction is expected to begin within the next few months. VinFast will initially enter the Indian market with two imported models—the VF e34 compact SUV and the VF 5 crossover—before starting local manufacturing.

VinFast’s location near Thoothukudi Port enhances its logistics for exporting vehicles. The potential for high localisation of vehicles in India also positions VinFast to benefit significantly from India’s established automotive components industry, which is now producing a wide array of EV parts.


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