Vietnamese electric vehicle maker VinFast is speeding up the construction of its new plant in Tamil Nadu, India. Originally set to open later, the plant will now start operations in the first half of 2025, six months ahead of schedule. This plant, located in the SIPCOT industrial estate in Thoothukudi (formerly Tuticorin), will be VinFast’s third facility and its second outside Vietnam.
The Tamil Nadu plant will have the capacity to produce 150,000 electric vehicles per year and is expected to create jobs for up to 3,500 people. VinFast’s CEO, Pham Nhat Vuong, has ambitious plans for expanding the company’s presence in Asian markets. Construction for a new plant in Indonesia is also set to begin soon.
VinFast’s quick progress in India—from signing a memorandum of understanding to starting construction in just two months—shows its determination to grow rapidly. The company aims to tap into the large and fast-growing Indian automobile market and use India as a base for exporting EVs to South Asia, the Middle East, and Africa.
VinFast is known for setting up plants quickly. In Vietnam, it built a large facility near Hai Phong in just 21 months, and in the US, it began constructing an EV factory in North Carolina in mid-2023, with production expected to start in 2025.
VinFast plans to introduce its electric vehicles in India with two models, the VF e34 SUV and the VF 5 crossover, before beginning local manufacturing. The company will also develop a network of dealerships and charging stations across India.
With growing demand for EVs in India and a strategic location near Thoothukudi Port, VinFast is well-positioned for both local sales and exports. The company will benefit from India’s strong automotive component industry, potentially sourcing parts for its global operations from India. By setting up in Tamil Nadu, VinFast aims to leverage India’s market potential and well-established automotive industry to drive its growth and support its global expansion.