VinFast to open India factory by June

Vietnamese electric vehicle (EV) maker VinFast is all set to open its car assembly plant in Thoothukudi, Tamil Nadu, by the end of June.

The move comes as Tesla is also preparing to enter the Indian market.

Pham Nhat Vuong, chairman of VinFast’s parent firm Vingroup, told shareholders that while the company is putting a pause on its expansion efforts in the US, Canada, and the European Union because of high logistics costs, it is focusing on the Indian market.

“In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines,” he told shareholders.

VinFast’s facility in India will be developed in phases, with an overall investment plan of up to $2 billion.

An initial $500 million will reportedly be deployed in the first five years. The plant is projected to have an annual production capacity of 150,000 vehicles and generate 3,000–3,500 local jobs.

The company selected Thoothukudi for its strategic location, given the industrial city’s proximity to the seaport and airport, Pham Sanh Chau, chief executive officer (CEO) of VinFast’s Asia operations, said.

The groundbreaking ceremony of VinFast’s Thoothukudi plant in Tamil Nadu took place in February last year, 50 days after the company signed an agreement with the state government.

“We have two factories in Vietnam — one is 50,000 and another around 100,000. We are looking at India for the domestic market, West Asia, and Africa,” he reportedly said.

Once the Thoothukudi plant becomes operational, the plant will be spread over 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate.

The plant will have an annual capacity of up to 150,000 units.

The Vietnamese car maker has committed to the state government to make a total investment of up to $2 billion, with an intended commitment of $500 million for the project’s first phase until 2029.

Apart from vehicle manufacturing, the facility will also include battery production and charging infrastructure development.

V-Green, a VinFast group company, is seeking co-investors to help build this charging network across India.

At the Bharat Mobility Global Expo 2025, VinFast showcased two all-electric premium SUVs—the VF 6 and VF 7—designed for the Indian market.

These models are expected to launch later this year.

Founded in 2017, VinFast is listed on Nasdaq.

The company recently delayed a separate $4 billion project in North Carolina, USA, citing the need for more favorable market conditions. The timeline for that project has now been pushed to 2028.

Meanwhile, Tesla is also preparing to enter the Indian market.

The Elon Musk-owned company has reportedly leased a 5,850-square-foot office space in Pune and began local hiring in February. The company posted job listings for 13 positions in Mumbai and Delhi.