Vietnamese EV maker VinFast fires up first India EV factory

Vietnamese EV maker VinFast’s first manufacturing plant outside Vietnam was inaugurated on Monday at the SIPCOT industrial park in Thoothukudi.

Built on a 400‑acre site, the ₹16,000‑crore (US $2 billion) facility rolled out its first vehicles—premium electric SUVs VF6 and VF7—just 17 months after the memorandum of understanding was signed with the state government.

The state‑of‑the‑art plant includes body, paint and assembly shops, plus quality control and logistics hubs, and began operations with a capacity to assemble 50,000 EVs per year, scalable up to 150,000 units within a few years.

It is expected to generate 3,000–3,500 direct jobs and support thousands more in the supply chain ecosystem.

VinFast Tamil Nadu will initially focus on the premium VF6 and VF7 SUVs tailored for the Indian market. The company aims to make the Thoothukudi facility its largest export hub, shipping to South Asia, the Middle East and Africa. Initial export orders have already been secured from Sri Lanka, Nepal and Mauritius.

VinFast is also working to boost local sourcing for components and is in discussions with domestic manufacturers including Vietnamese plastic suppliers to relocate or expand production in India.

The broader strategy in India falls under a $2 billion investment plan, with the first $500 million committed over five years; the company targets production of up to 200,000 vehicles globally by 2025 and eventual ramp‑up to one million units annually by 2030.

Tamil Nadu chief minister M.K. Stalin hailed the landmark investment as a boost for Tamil Nadu’s economy and a signal of Thoothukudi’s emergence as a new automotive hub beyond Chennai.

He noted that the plant will aid the state’s drive towards greener mobility and industrial growth in the southern districts.

Vehicles from the Thoothukudi plant are set to reach Indian showrooms later this month, with VinFast planning to launch the VF6 and VF7 across a nationwide dealer network, supported by partnerships with electric‑vehicle infrastructure providers and battery recyclers.