VinFast established a $500 million electric vehicle plant in Thoothukudi, Tamil Nadu which is part of a larger $2 billion India investment plan, which aims to hit an initial production of 50,000 EVs annually.
VinFast – A New Entrant In Indian EV Market
This plant promises over 3,000 local jobs and fast access to ports for regional exports as it has the capacity to scale to 1.50 lakh units.
VinFast appears to be making a crucial move into the third-largest car market in the world with models like the VF6 and VF7 on deck and production kicking off.
The firm has zeroed down on this site in southern Tamil Nadu after evaluating 15 places in six states.
This decision is mainly influenced by the key local perks such as a favourable industrial setup, skilled workers, strong roads, and good port connectivity.
These factors make Thoothukudi as the ideal location for manufacturing and exporting vehicles.
Establishing A Regional Export Centre
VinFast is already planning to turn this plant into a regional export centre, serving markets in regions like South Asia, Middle East, and Africa.
Further, the company is planning to ramp up to 70–80 per cent local sourcing as the production has started off using CKD kits (partially assembled components).
In the meantime, VinFast is in active talks with Indian and Vietnamese suppliers to set up nearby operations.
VinFast unveiled its VF6 and VF7 premium electric SUVs, aimed squarely at the Indian market at the recent edition of the Indian Auto Show.
On 7 September, the prices of both models will be finally announced.
Besides manufacturing, VinFast is also setting up showrooms (32 signed across 27 cities so far, aiming for 35 by year-end) and forging ties in charging infrastructure—especially via a partnership with RoadGrid.
It appears that this facility is designed for domestic as well as international markets.
VinFast is set to build export-ready vehicles as well, for countries such as Sri Lanka, Nepal, the Middle East, and Africa among others with direct port access.
This latest plant in India is positioned as both a manufacturing base and an export hub.
Considering the future, the company has laid out plans for localized sourcing, dealer expansion, and charging partnerships, while initial models like the VF6 and VF7 are lined up for launch.
Let’s see, how do these models compete in a crowded EV market?
This will mainly depend on execution, pricing of its models, and how quickly supporting infrastructure develops.
