Big Win For Make In India! Vietnamese EV Maker VinFast Begins Production In India—Details

Vietnam’s VinFast has officially inaugurated its first overseas electric vehicle (EV) assembly facility in India, a move that marks a strategic push into one of the world’s fastest-growing automobile markets. The facility, located at the SIPCOT Industrial Park in Thoothukudi, Tamil Nadu, underscores the company’s ambition to expand beyond Southeast Asia and strengthen its global manufacturing footprint.

Spread across 400 acres, the greenfield plant begins operations with an installed capacity of 50,000 vehicles annually, which can be scaled up to 150,000 units depending on market demand. The factory will initially assemble VinFast’s premium EV models—VF 6 and VF 7—targeting India’s mid-to-premium segment. Retail sales are expected to begin later this month.

“The Tamil Nadu plant marks a key milestone in VinFast’s long-term strategy for India. It lays the groundwork not only for domestic sales but also for establishing an export base to markets such as Sri Lanka, Nepal, and Mauritius,” said Pham Sanh Chau, CEO of VinFast Asia. He added that the company intends to develop the facility into its largest export hub for South Asia, the Middle East, and Africa.

The Haiphong -based firm signed an MoU with the Tamil Nadu government in early 2024, committing $500 million over five years, with a potential total investment of up to $2 billion. The company claimed that the plant is expected to generate between 3,000 and 3,500 direct jobs and contribute significantly to the regional supply chain and auxiliary industries.

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Beyond manufacturing, VinFast is working to establish a complete EV ecosystem in India, covering assembly, distribution, servicing, and battery lifecycle management. Partnerships have already been inked with RoadGrid, myTVS, Global Assure, and BatX Energies to support after-sales service, roadside assistance, and battery reuse, mentioned the company's release. 

The timing of VinFast’s entry is notable, coming as India accelerates its EV transition through policy incentives and infrastructure support. Analysts believe that a successful India foray could be pivotal to VinFast meeting its global sales target of 200,000 vehicles by 2025. The company reported sales of over 72,000 units in the first half of this year, primarily in Vietnam.

While its efforts to break into North America and Europe have met with mixed results, the Indian venture could offer VinFast the scale and cost advantage it needs, according to industry analysts. The plant’s proximity to Thoothukudi port further strengthens its export prospects, positioning Tamil Nadu as a potential EV manufacturing hub for the wider region, as per analysts.