VinFast opens 1st EV plant in India
What's the story
Vietnamese electric vehicle (EV) manufacturer VinFast has inaugurated its first Indian facility in Thoothukudi, Tamil Nadu. The $500 million plant is a major part of the company's $2 billion investment plan for India and its expansion into Asian markets. The facility will initially have an annual production capacity of 50,000 electric cars, with plans to increase it to 150,000 units in the future.
Location selection
Thoothukudi site chosen after evaluating 15 locations
VinFast chose the Thoothukudi site after considering 15 locations across six Indian states. The decision was based on Tamil Nadu's strong infrastructure, skilled workforce, and port connectivity. These factors are crucial to VinFast's plan to make the facility an export hub for South Asia, the Middle East, and Africa. "This project will seed an entirely new industrial cluster in southern Tamil Nadu," said state Industries Minister T.R.B. Raaja.
Market strategy
VinFast shifts focus to Asia
VinFast's latest move comes as part of its shift to Asia after facing challenges in the US and European markets. The company recently started building a $200 million assembly plant in Indonesia and is also expanding to Thailand and the Philippines. Despite selling nearly 97,000 vehicles in 2024 (three times its previous year's total), 90% of those sales were limited to Vietnam.
Market entry
EV market in India
VinFast is now entering India's rapidly growing EV market, which is mostly dominated by local players like Tata Motors and Mahindra, and foreign players like Hyundai and MG Motor. India sold over six million EVs in 2024, but four-wheel passenger vehicles accounted for only 2.5% of that number. Despite this, passenger EV sales have surged from just 1,841 in 2019 to over 110,000 units in 2024.
Expansion plans
VinFast VF6, VF7 to launch soon
VinFast plans to launch its VF6 and VF7 electric SUVs in India later this year. The company has already signed agreements to set up 32 dealerships across 27 cities. It will establish local showrooms, service centers, and battery recycling infrastructure in the country. VinFast has also received initial international orders from Sri Lanka, Nepal, and Mauritius, underscoring the site's potential as an export-oriented facility.