VinFast, the electric vehicle maker from Vietnam, has officially started production at its new plant in Thoothukudi, Tamil Nadu. The launch is part of the company’s $2 billion plan to grow its presence in Asia, with India playing a key role in its expansion, reports Business Today.
The plant, which involved an initial investment of $500 million, will produce 50,000 electric vehicles every year and has the potential to ramp up to 150,000 units. Its location near a major port will also support exports across the region. The facility is expected to create over 3,000 jobs, offering a boost to the local economy.
VinFast’s decision to focus on Asia follows its earlier struggles to gain a foothold in the U.S. and European markets. In addition to India, the company is also building its presence in Indonesia, Thailand, and the Philippines. Its plant in Indonesia is also set to produce 50,000 cars annually.
Tamil Nadu was chosen for its strong manufacturing base, skilled workforce, and good infrastructure. State Industries Minister T.R.B. Raaja said the project could become a major industrial centre for the region. “This will create new opportunities in southern Tamil Nadu, and building more such centres is essential for India to grow as a manufacturing leader,” he said.
The Indian plant is aimed at serving both local and export markets. Orders have already come in from Sri Lanka, Nepal, and Mauritius. VinFast’s Asia CEO, Pham Sanh Chau, said the company is already seeing interest from other manufacturers who want to set up production in India. “We’ve even heard from a company in Vietnam looking to move their plastic parts production here to help support us,” he said.
VinFast hopes to deliver 200,000 vehicles globally in 2025. In the first half of this year, the company sold around 72,100 vehicles, most of them in Vietnam. Expanding into India is seen as a major step toward increasing its share in the growing electric vehicle market.
India is currently the world’s third-largest car market and demand for electric vehicles is on the rise.
VinFast also opened its largest showroom in India in Chennai’s Teynampet area. The 4,700-square-foot space is the biggest of the 35 showrooms the company plans to open across more than 27 cities this year. It will display the company’s premium electric SUVs, the VF 6 and VF 7.
Pre-bookings for the two models began on July 15, with a refundable booking amount of ₹21,000. VinFast plans to open all 35 dealerships by the end of the year, marking an important step in its entry into the Indian market.
