Synopsis
VinFast, the Vietnamese electric vehicle manufacturer, has inaugurated its first manufacturing plant in southern India, signaling a significant move to penetrate the country’s burgeoning auto market. With a planned investment of $2 billion in Tamil Nadu, VinFast aims to produce up to 150,000 vehicles annually. The company anticipates introducing its cars to Indian showrooms later this month.
AgenciesVietnamese electric vehicle maker VinFast Auto Ltd. on Monday inaugurated its new manufacturing facility in Thoothukudi, Tamil Nadu, marking a major step in its $500 million entry into the Indian market. The plant, its first in India and third globally, is expected to play a central role in the company’s strategy to expand into South Asia, the Middle East, and Africa.
The new facility will initially have the capacity to produce 50,000 vehicles annually, with plans to ramp up production to 150,000 units per year. The company will focus on premium electric SUV models, including the VF 7 and VF 6, VinFast said in a statement.
Speaking to Bloomberg and Reuters, VinFast Asia CEO Pham Sanh Chau described the India plant as “an export-oriented manufacturing hub” and a key pillar in VinFast’s shift in strategy to focus on emerging markets such as India, Indonesia, the Philippines, and Vietnam. The company expects to open its Indonesia plant by October.
“We want to position ourselves as a premium global carmaker, which is also accessible in other markets,” Chau told Bloomberg TV.
Global orders, India expansion, and supply chain shift
Chau confirmed that VinFast had received vehicle orders from Sri Lanka, Nepal, Mauritius, and other countries across South Asia, Africa, and the Middle East. Despite these international orders, the immediate priority remains meeting demand from Indian customers.
VinFast delivered 97,399 EVs globally in 2024 and has set a target of 200,000 deliveries for 2025. In the first half of 2025 alone, it sold around 72,100 units, primarily in Vietnam.
To support its India operations, the EV maker is also in talks with several component suppliers, aiming to localise more of its sourcing. “Some of our current component manufacturers are considering shifting part of their production to our industrial park in India,” Chau told Reuters. He also noted an inquiry from a Vietnam-based plastic manufacturer interested in relocating operations to support production at the new Indian plant.
Financing and dealer network
VinFast has signed preliminary financing agreements with major banks for its India expansion, with formal announcements expected soon. The company is also in discussions with private equity firms and reportedly sought a loan of up to $200 million from Indian state-owned banks, according to a Bloomberg report from May.
VinFast entered the Indian market with its first showroom in Surat in late July. It plans to establish 35 dealerships across 27 Indian cities by the end of the year and will roll out vehicles to showrooms later this month. Pricing details and official launch timelines are yet to be disclosed.
In 2023, VinFast and the Tamil Nadu government agreed to a potential $2 billion investment, with an initial commitment of $500 million over five years.
The Thoothukudi plant is expected to strengthen VinFast’s supply chain diversification, as more global manufacturers explore alternatives to China due to geopolitical tensions, trade restrictions, and cost pressures.
(With inputs from agencies)