VinFast Auto, a Vietnam-based electric vehicle (EV) company preparing to enter the Indian market in the latter half of the year, is set to establish a sprawling vehicle manufacturing facility in Thoothukudi, Tamil Nadu. According to insiders, India will serve as a global manufacturing hub for the company.
Sources revealed that VinFast’s top leadership, including Chairman Phạm Nhật Vượng, is anticipated to visit India soon for the signing of a Memorandum of Understanding (MOU) with the Tamil Nadu government. The agreement will pave the way for a large-scale manufacturing plant, encompassing a battery-making unit and a vehicle assembly line.
The upcoming facility is expected to require an investment of Rs 200-250 crore, boasting a production capacity of 1.5 lakh units annually. However, initial production levels are projected to be less than one-third of capacity during the first phase.
While queries to VinFast’s spokesperson remained unanswered, the Tamil Nadu Industry Minister TRB Rajaa also did not respond to questions at the time of press.
VinFast sees India as a crucial manufacturing hub aligned with its global strategy. The country’s increasing domestic demand for EVs and its potential to serve as an export hub for neighboring markets make it an attractive proposition, according to Puneet Gupta, Director of India & ASEAN Automotive Sales Forecast at S&P Global Mobility.
As previously reported by Moneycontrol, VinFast Auto will initially import electric sports utility vehicles (e-SUVs) as completely built units (CBUs) into India. Subsequently, completely knocked down (CKD) kits of its cars will be assembled in the country. The company plans to showcase its VF6, VF7, VF8, and VF9 eSUVs at the 2025 Auto Expo, with an India-specific electric micro or mini-SUV in the pipeline for future release.
