Vietnamese electric vehicle manufacturer VinFast officially began operations at its first overseas factory in Thoothukudi, Tamil Nadu, on Monday. The plant, with an initial production capacity of 50,000 EVs per year—scalable up to 1,50,000—marks the company’s entry into the Indian market, which is the world’s third-largest automotive sector. VinFast will first launch its VF 6 and VF 7 premium electric SUVs and aims to introduce them in Indian showrooms later this month, though prices are yet to be announced.
Facing challenges in penetrating Western markets, VinFast is hoping to gain a strong foothold in India. CEO of VinFast Asia, Pham Sanh Chau, told Reuters that several component suppliers are considering relocating production to the Indian industrial park, boosting local sourcing. While the plant has already received orders from Sri Lanka, Nepal, and Mauritius, the company’s immediate focus is on Indian consumers.
Last year, VinFast committed to invest $500 million in Tamil Nadu over five years, with the possibility of increasing it to $2 billion. Backed by parent firm Vingroup, VinFast also plans to launch a factory in Indonesia by year-end, though its U.S. plant has been delayed until 2028. Future plans include expanding services like electric ride-hailing in India.
