VinFast inaugurates Tamil Nadu EV plant, targets 1,50,000 annual capacity

Vietnamese electric vehicle manufacturer VinFast has officially inaugurated its first electric vehicle (EV) assembly factory in India. Located in SIPCOT Industrial Park in the city of Thoothukudi, Tamil Nadu, and spread across 400 acres, this plant is the third functioning factory for VinFast globally and its first manufacturing facility in India.

In its initial phase, the Tamil Nadu facility will produce electric SUVs—the VF 6 and VF 7—aiming to meet the growing demand for electric passenger vehicles in India. This facility will be operational with an annual capacity of 50,000 units initially and afterwards ramp up to 1,50,000 units. This is in line with VinFast’s larger plan to sell 2,00,000 cars worldwide in 2025, and ultimately increase annual production to 10 lakh EVs by 2030.

VinFast India facility: Focus on local integration

The facility in Tamil Nadu will provide full integration of production processes including body shop, paint shop, assembly lines, quality control, a logistics center, and a local contractor auxiliary cluster, confirming VinFast’s commitment to local integration as a contributor to industry growth in India. At full scale, the factory is estimated to directly create 3,000–3,500 jobs and indirect jobs through its supply chain.

The company states it will place an emphasis on indigenous sourcing and partnerships with suppliers, leading to greater integration with India’s car ecosystem. Technology transfer and human resource development are also in the pipeline, in line with India's industrial upskilling and green mobility aspirations.

Also watch: Decoding VinFast’s plans for India | VF7, VF6, VF3 Coming Soon | HT Auto

VinFast’s broader EV ecosystem in India

VinFast is developing an integrated EV ecosystem in India, going beyond vehicle production to cover distribution, after-sales services, and recycling of the battery. The company has partnered with RoadGrid, myTVS, and Global Assure to develop service and support infrastructure. It has also partnered with BatX Energies for recovery and reuse of the battery, adding to its circular economy practice commitment.

Strategic gateway to emerging markets

VinFast also views the Tamil Nadu factory as a regional export base for South Asia, the Middle East, and Africa. According to Pham Sanh Chau, CEO of VinFast Asia, the company has already received initial export orders from several countries in these regions. “This plant establishes a strong foundation for our long-term growth in India and beyond," he said during the inauguration. “We aim to turn this into our largest export base serving multiple high-growth markets."

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