MUMBAI: 29th April, 2025: VinFast, the Vietnamese electric vehicle titan, is accelerating its expansion into India, with plans to open a car assembly plant by the end of June.
The company, which is an affiliate of Vietnam’s largest corporation, Vingroup JSC, was founded in 2017 with the goal of becoming a global electric vehicle manufacturer and has a high-tech manufacturing facility in Hai Phong, Vietnam.
VinFast and the Tamil Nadu government have signed a long-term investment agreement worth Rs. 16000 crore in the first quarter of 2024.
VinFast began building a new integrated EV manufacturing facility in Thoothukudi, southern Tamil Nadu, in April 2024. The initial phase will cost Rs 4000 crore over five years.
They broke ground in front of Chief Minister M. K. Stalin, state ministers, senior government officials, and VinFast’s top executives. “VinFast’s EV manufacturing investment is the first large-scale automotive investment in southern Tamil Nadu, and this project will further strengthen the state’s image as the hub of automotive manufacturing and India’s EV capital,” said Chief Minister M K Stalin at the event.
It was expected that 3,000 to 3,500 jobs would be created on the 400-acre site at the Tamil Nadu Industrial Promotion Corporation (SIPCOT) industrial park in Thoothukudi. VinFast India CEO Pham Sanh Chau stated at the event that the company chose Tamil Nadu for its EV factory because of its skilled workforce, progressive EV-related government policies, and an EV manufacturing ecosystem.
This EV factory, which is expected to produce up to 150,000 units per year, will supply not only India but also South Asia, the Middle East, and Africa. Plans are in the works to establish a nationwide dealer network to help build the brand, with the promise of “good cars, good prices, and excellent after-sales.” VinFast is focusing on local assembly to capitalise on India’s rapidly expanding electric vehicle (EV) market and deliver competitively priced vehicles.
VinFast’s rapid entry highlights the increasing competition in the passenger EV segment, posing a direct challenge to established players like Tata Motors and MG Motor, as well as new international entrants preparing to launch.
