Vietnamese electric vehicle (EV) manufacturer VinFast has officially opened its first manufacturing facility in India, which represents a major advance in its global expansion. The plant, located in Thoothukudi, Tamil Nadu, is part of a $500 million investment and will serve as a critical hub for the company’s operations in South Asia, Africa, and the Middle East.
As part of its broader strategy to enhance cost-efficiency and streamline supply chains, VinFast is in active discussions with Indian component manufacturers to increase local sourcing. The move is expected to not only reduce production costs but also align with India’s Make-in-India and FAME-II policies, which incentivise domestic manufacturing in the electric mobility sector.
The facility is designed for an initial capacity of 50,000 units per year and will primarily manufacture electric two-wheelers and compact four-wheelers tailored to the Indian market. With this launch, VinFast aims to offer competitive EV options and take on established players like Tata Motors, Ola Electric, and Ather Energy.
Phạm Nhật Vượng, Chairman of Vingroup and founder of VinFast, stated, “India represents a key market in our global roadmap. With its strong engineering talent and government support for EV adoption, we’re confident this plant will be a cornerstone of our success in the region.”
The Tamil Nadu government welcomed the development, citing the job creation potential and alignment with the state’s vision to become a leading EV manufacturing hub. Officials confirmed that the plant is expected to generate over 3,000 direct and indirect jobs in its first phase.
The company is also considering a local R&D setup to adapt its EV technology for Indian roads and consumer preferences.
VinFast’s entry into India comes amid growing consumer interest in affordable and eco-friendly transportation alternatives. With this facility, the company joins the ranks of global EV players increasingly investing in Indian manufacturing and infrastructure.
VinFast’s next move includes launching its flagship electric scooter and compact EV models in India by early 2026, with plans for a retail and charging network rollout already in the pipeline.
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