Factory Investment: India
VinFast launches "world class" flagship EV plant in Tamil Nadu, India
Vietnamese EV maker VinFast opens its first overseas plant in Tamil Nadu, India, signalling a confident bet on one of the world’s fastest-growing vehicle markets and a strategic push toward regional exports and sustainable mobility leadership.
VinFast, Vietnam’s leading electric vehicle manufacturer, has formally inaugurated its first assembly plant outside the country at the SIPCOT Industrial Park in Thoothukudi, Tamil Nadu. With this move, India, the world’s third-largest automobile market, is being positioned at the heart of VinFast’s regional and global ambitions.
The Tamil Nadu plant becomes the company’s third operational facility worldwide and the fifth major project within its expanding international manufacturing network. The significance lies not only in the plant’s location, but in its function: this is the first full-scale VinFast operation to be inaugurated beyond Vietnam’s borders, and its presence in South India points to a clear shift in the global EV environment.
Pham Sanh Chau, CEO of VinFast Asia, was unequivocal in outlining the plant’s importance: “The VinFast Tamil Nadu plant marks a strategic milestone in our long-term commitment to the Indian market. It establishes a strong foundation for sustainable growth and positions us to offer high-quality, competitively priced electric vehicles to Indian consumers.”
Tamil Nadu site designed to “world-class standards”
Occupying 400 acres, the Tamil Nadu facility has been described as designed to “world-class standards,” integrating high levels of automation and the latest in production technology; a remarkable production hub for the region. The industrial complex comprises multiple workshops - including Body Shop, Paint Shop, Assembly Shop and Quality Control Centre - as well as a central logistics hub. An auxiliary cluster is also planned, supporting the development of local suppliers over time.
Plant production at Tamil Nadu aims to scale from 50,000 to 150,000 vehicles per annum
The site will initially assemble two premium electric SUV models - the VF 6 and VF 7 - with a starting capacity of 50,000 vehicles per year. Capacity is scalable up to 150,000 units annually, reflecting VinFast’s confidence in surging demand, “depending on the response from the market, but we are very optimistic about that,” said Chau.
This production power forms a cornerstone of the company’s broader goals: to sell 200,000 vehicles by the end of 2025, and to reach an annual output of 1 million vehicles globally by 2030.
Vinfast aims to turn regional into the “EV capital of South Asia”
VinFast is not entering the market quietly. The new facility is expected to generate between 3,000 and 3,500 direct jobs, in addition to thousands of indirect roles across the regional supply chain. The company’s involvement promises to contribute meaningfully to Tamil Nadu’s industrial ecosystem - already one of India’s most robust - and reinforces the state's ambitions to become a regional EV manufacturing hub.
“Looking ahead, the facility will expand its production capacity to meet rising demand,” added Chau. “We aim to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa.
“In fact, we've already secured initial orders from several countries across these regions. In close collaboration with the Tamil Nadu government, VinFast is working to transform the area into the 'EV capital of South Asia' - supporting both the dynamic domestic market and our broader regional ambitions.”
Battery recovery, reuse, and domestic localisation
Beyond the vehicles themselves, VinFast’s ambitions extend into the full EV ecosystem. The company’s entry into India is being structured around a vertically integrated model, encompassing not just assembly but distribution, after-sales service, and end-of-life recycling.
The Tamil Nadu plant is intended as the physical anchor of this strategy. Parallel initiatives include collaborations with dealer networks in major cities and strategic partnerships with RoadGrid, myTVS, and Global Assure to strengthen after-sales and digital services. VinFast has also teamed up with BatX Energies to enable battery recovery and reuse - a critical step toward circular manufacturing and environmental sustainability.
Read more Digital production stories
Domestic localisation will be key. The company has stated its commitment to developing a strong network of Indian suppliers, transferring manufacturing knowledge and investing in workforce upskilling. These efforts are in step with national policy priorities and are likely to support India’s broader ambitions to be a global centre for green industrialisation.
Speed, scale, and Tamil Nadu’s global manufacturing potential
For VinFast, the Tamil Nadu plant is a calculated bet that the region has the potential to become a major EV production market and a central node in the company’s regional export strategy. It is also a bid to pre-empt competition from other international players who may be slower to invest at scale.
As India increasingly looks to electrify its mobility infrastructure, VinFast’s early presence could yield first-mover advantages - provided the company can maintain product competitiveness and navigate the complexities of India’s cost-sensitive market. The groundwork is being laid for commercial production success, and symbolic leadership in shaping the EV future of South Asia.
With a focus firmly on export and localisation, VinFast appears determined to embed itself in the economic fabric of Tamil Nadu and beyond. If successful, the OEM’s first plant outside Vietnam could also become its most pivotal.
