VinFast India gets EV orders from Nepal, Sri Lanka, West Asia, and Africa

Thoothukudi facility likely to be inaugurated by month-end

Vietnamese electric vehicle (EV) major VinFast has received advance export orders from Nepal, Sri Lanka, West Asia, and Africa, even before the inauguration of its $2 billion plant in Tamil Nadu’s Thoothukudi.

 

The company plans to inaugurate the facility by the end of this month, Pham Sanh Chau, chief executive officer of VinFast Asia, told Business Standard. While operation is expected to begin shortly afterward, vehicle deliveries are likely to start by the upcoming festival season.

 

VinFast is fast-tracking its plans amid its rival Tesla’s slower-than-expected entry into India with just one showroom. The move also comes at a time when India is fast emerging as a global exporter of automobiles, driven by government policies and expanding market access.

 

In FY25, the country’s original equipment manufacturers shipped a record 765,000 passenger vehicles, a 14 per cent rise over 672,000 units in FY24.

 

Chau said the factory would gradually scale up its capacity to meet demand.  “We have already received some orders from neighbouring countries, such as Nepal, Sri Lanka, and several nations in West Asia, and Africa for export. Further details will be announced at the appropriate time,” Pham Sanh Chau said.

 

While the exact production start date is yet to be finalised, sources indicate it may coincide with the launch of the new terminal building at Tuticorin Airport, likely on July 27.

 

Last week, VinFast’s subsidiary VinFast Auto India opened bookings for its premium electric SUVs — VF 6 and VF 7 — in India with a fully refundable booking amount of ₹21,000. Customers can reserve vehicles online (VinFastAuto.in) or at showrooms. These models are expected to reach customers starting from August.

 

VinFast has committed up to $2 billion over five years for the Thoothukudi unit, which may see an annual production of around 150,000 units. The first phase of the plant has reportedly seen an investment of around $500 million. 

 

The government is encouraging car manufacturers to increase the share of exports from 14 per cent now to 25 per cent by 2030, through various initiatives like FAME, PM E-Drive, and the Production-Linked Incentive (PLI).

 

At present, Maruti Suzuki and Hyundai Motor India dominate the country’s outbound trade, accounting for 43 per cent and 21 per cent of the export market, respectively. Maruti Suzuki, which shipped 332,585 units overseas in FY25, aims at a 20 per cent increase in FY26 to take its total exports beyond 400,000. Hyundai Motor India, which exported around 163,386 units in FY25, is eyeing a more modest 7-8 per cent growth in FY26, making India its largest export hub outside South Korea.

 

While Maruti exported Jimny and Fronx to even a mature market like Japan, Hyundai targeted markets across Saudi Arabia, South Africa, Mexico, Chile, and Peru. Other automakers, such as Nissan Motor, Honda Cars, and Volkswagen, also saw strong export growth in FY25 — 66 per cent, 60 per cent, and 12 per cent, respectively.