Vietnamese auto major VinFast inaugurates EV assembly unit in Thoothukudi

Vietnamese electric vehicle major VinFast on Monday officially inaugurated its electric vehicle (EV) assembly plant at Thoothukudi in Tamil Nadu. The unit is set to see an investment to the tune of ₹16,000 crore in phases, out of which ₹4,300 crore will be used in the first phase.

 

The plant was inaugurated by Tamil Nadu Chief Minister M K Stalin. VinFast Tamil Nadu is the company’s third operational plant and the fifth project in its global manufacturing network. The company is planning to develop Thoothukudi as an export hub, as “EV capital of South Asia”, said a top executive.

 

Stalin said that the facility was built in a record time of 17 months from the date of groundbreaking ceremony.

 

“The VinFast Tamil Nadu plant marks a strategic milestone in our long-term commitment to the Indian market. It establishes a strong foundation for sustainable growth and positions us to offer high-quality, competitively priced electric vehicles to Indian consumers,” said Pham Sanh Chau, chief executive officer of VinFast Asia.

 

In its initial phase, VinFast Tamil Nadu will focus on assembling two premium electric SUV models- VF 7 and VF 6. The plant’s starting capacity is 50,000 vehicles per year, scalable up to 150,000 units annually to meet the rising market demand.

 

This milestone marks a major step in VinFast’s global expansion, reinforcing the company’s long-term commitment to the world’s third-largest automobile market and underscoring VinFast’s confidence in India’s strategic role in the future of the global EV industry, the company said in a statement.

 

The company has reportedly scouted 15 locations in six Indian states before choosing Tamil Nadu. “This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters are what India needs to emerge as a global manufacturing hub," said state industries minister TRB Rajaa.

 

 

As the first VinFast facility inaugurated outside Vietnam, it demonstrates both the brand’s global vision and its capacity to deliver large-scale projects. With a total area of 400 acres, the plant is equipped with state-of-the-art production lines meeting world-class standards, featuring advanced automation and cutting-edge technologies. The complex houses multiple workshops, including body shop, paint shop, assembly shop, quality control centre, and a logistics hub. It also includes an auxiliary cluster for local contractors, which is expected to expand in the coming years.

 

At full capacity, the plant will create 3,000-3,500 direct jobs for local workers, along with thousands of indirect jobs in the supply chain ecosystem. This will help boost socio-economic development in Tamil Nadu, positioning the state as a manufacturing hub for India and a potential EV capital of South Asia in the near future.

 

With the launch of the Tamil Nadu plant, VinFast moves closer to its 2025 sales target of 200,000 vehicles and its long-term production goal of 1 million vehicles per year by 2030. This milestone reaffirms VinFast’s commitment to promoting sustainable mobility and advancing a greener future in India and worldwide, it said.

 

“Looking ahead, the facility will expand its production capacity to meet rising demand. We aim to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa. In fact, we've already secured initial orders from several countries across these regions. In close collaboration with the Tamil Nadu government, VinFast is working to transform the area into the 'EV capital of South Asia'— supporting both the dynamic domestic market and our broader regional ambitions," Chau added.

 

VinFast not only strengthens the company’s global production capability, but also contributes significantly to India’s green industrial development. The plant will prioritise collaboration with domestic suppliers, promoting supply chain localisation, technology transfer, and workforce upskilling.

 

 

Since entering India, VinFast has actively pursued a comprehensive EV ecosystem model covering assembly, distribution, after-sales services, and recycling, with the 400-acres Tamil Nadu plant being a strategic piece in this value chain. In parallel, VinFast has partnered with multiple dealer groups in key cities and teamed up with RoadGrid, myTVS, and Global Assure to build a robust digital services and after-sales support network. VinFast has also joined forces with BatX Energies to enable battery recovery and reuse, advancing circular production and sustainable development in the world’s third-largest automobile market.

 

VinFast, a subsidiary of Vingroup JSC and one of Vietnam’s largest conglomerates, is a pure-play EV manufacturer with the mission of making EVs accessible to everyone. VinFast’s product lineup includes a wide range of electric SUVs, e-scooters, and e-buses.