CHENNAI— Vietnamese electric vehicle (EV) manufacturer VinFast officially launched operations at its new assembly plant in Thoothukudi, Tamil Nadu, on Monday, marking the start of a phased investment expected to reach ₹16,000 crore (approximately $1.9 billion).
In its initial phase, the facility is capable of assembling 50,000 units annually of the company’s two premium electric SUV models—the VF 6 and VF 7. VinFast plans to scale production to 150,000 vehicles per year to meet rising demand, with the long-term goal of transforming Thoothukudi into a key export hub.
Leveraging Tamil Nadu’s strong infrastructure, skilled labor force, and strategic port access, VinFast aims to use the site as a gateway for vehicle exports to South Asia, the Middle East, and Africa.
“This project will seed an entirely new industrial cluster in southern Tamil Nadu,” said State Industries Minister T.R.B. Raaja, emphasizing the plant’s importance in supporting India’s manufacturing ambitions.
VinFast is also expanding its global footprint. It recently broke ground on a $200 million assembly plant in Indonesia and has announced plans to enter markets in Thailand and the Philippines.
In 2024, the company sold nearly 97,000 EVs—triple its sales from the previous year—primarily serving the domestic Vietnamese market.
VinFast opened its first showroom in India on July 27 in Surat, Gujarat, where it introduced the VF 6 and VF 7 electric SUVs as right-hand-drive variants for the first time. The company plans to open 35 dealerships across 27 cities in India by the end of the year.
India’s rapidly growing EV market is currently dominated by domestic automakers like Tata Motors and Mahindra in the affordable segment, while Hyundai and MG Motor lead the premium space. Although India sold over six million EVs in 2024, passenger cars made up only 2.5 percent of total EV sales.
To strengthen its ecosystem in India, VinFast has partnered with RoadGrid, myTVS, and Global Assure to provide charging and after-sales support. It has also teamed up with BatX Energies to promote battery recycling and develop a circular battery value chain, underscoring its commitment to sustainability.
VinFast’s entry into India comes just weeks after Tesla launched its Model Y SUV in the country, priced from ₹59.89 lakh. Tesla is currently importing the Model Y as a completely built unit (CBU) from its manufacturing facility in Shanghai. (Source: IANS)
