VinFast’s $2-billion Tamil Nadu plant begins EV production

VinFast begins EV production at its Rs 16,000 crore plant in Tamil Nadu, India—its first outside Vietnam. The facility will serve as an export hub for South Asia, Middle East, and Africa, producing premium electric SUVs VF 6 and VF 7. Bookings are open with delivery plans in motion.

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VinFast is following a comprehensive EV ecosystem model in India, spanning vehicle assembly, distribution, after-sales services, and battery recycling. (Reuters)

Vietnamese auto giant VinFast on Monday operationalised its $2 billion electric vehicle (EV) plant at Thoothukudi in Tamil Nadu, marking the fastest manufacturing scale-up by any foreign carmaker in India. 

The plant, its first in India and third globally, has been commissioned within 17 months of signing an agreement with the Tamil Nadu government.

“We feel very, very proud because this is the first manufacturing facility outside Vietnam,” said Pham Sanh Chau, CEO of VinFast Asia. “We aim to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa.”

The 400-acre facility was inaugurated by Tamil Nadu chief minister MK Stalin. In March 2024, VinFast signed a memorandum of understanding with the state government for a potential $2 billion (Rs 16,000 crore) investment, with an initial commitment of $500 million (around Rs 4,500 crore) over the next five years. The company has invested Rs 1,300 crore so far to roll out 50,000 EVs annually. The plant will initially focus on premium electric SUV models, including the VF 6 and VF 7.

India to be key export and production hub

Chau said the company has already secured initial orders from several countries across South Asia, the Middle East, and Africa. The India facility, along with upcoming plants in Indonesia and North Carolina (USA), will support VinFast’s long-term goal of producing one million vehicles per year by 2030.

The Thoothukudi plant includes workshops for body, paint, assembly, quality control & logistics and also features an auxiliary cluster for local suppliers, which is expected to expand in the coming years. At full capacity, the facility will produce 150,000 vehicles annually and will employ 3,000–3,500 directly. “A lot of machinery is coming in. We are going to expand and will invest Rs 4,000 crore more,” Chau said, without giving a timeline.

Bookings open, retail expansion underway

VinFast opened pre-bookings for the VF 6 and VF 7 on July 15, with customers able to reserve their vehicles through showrooms or the company’s website, VinFastAuto.in, for a fully refundable booking amount of Rs 21,000. Chau said the company has been receiving interest from neighbouring countries like Sri Lanka, Nepal, Mauritius, and Bangladesh. “We have a very good online pre-booking response. I think momentum will explode the day we launch the cars, when we announce the feature list and pricing,” he said.

VinFast is following a comprehensive EV ecosystem model in India, spanning vehicle assembly, distribution, after-sales services, and battery recycling. It has partnered with multiple dealer groups in major cities and collaborated with RoadGrid, myTVS, and Global Assure to build a digital and service support network. It has also tied up with BatX Energies for battery recovery and reuse, aligning with its circular economy and sustainability goals in the world’s third-largest automobile market.

The company has also launched its retail operations in India, opening its first showroom in Surat, Gujarat, followed by its largest outlet in Chennai last week. VinFast plans to open 35 dealerships across over 27 cities by the end of the year.

Speaking at the inauguration, CM Stalin said Tamil Nadu accounts for 40% of India’s EV production, with companies such as Tata Motors, Hyundai, Renault-Nissan, BYD and Ola Electric establishing or expanding EV manufacturing facilities in the state. “Tamil Nadu is already recognised as the EV capital of India,” he said.

(The writer was in Tuticorin at the invitation of VinFast)

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This article was first uploaded on August four, twenty twenty-five, at forty-five minutes past eight in the night.
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