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VinFast Opens Its First Electric Vehicle Assembly Plant in India

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VinFast Opens Its First Electric Vehicle Assembly Plant in India
05 Aug 2025
5 min read

News Synopsis

Vietnamese electric vehicle (EV) manufacturer VinFast has officially inaugurated its first EV assembly facility in India. Located at the Sipcot Industrial Park in Thoothukudi, Tamil Nadu, the plant marks the company’s third global facility and its first outside Vietnam, underlining VinFast’s strategic commitment to expanding its international footprint.

This move positions India as a pivotal market for the brand, both for local EV adoption and regional exports.

Tamil Nadu: A Strategic EV Hub

The plant was inaugurated in the presence of Tamil Nadu Chief Minister MK Stalin, who signed the first VF7 electric SUV produced at the facility. The event not only marked the launch of operations but also highlighted the government’s support for EV investments in the region.

Tamil Nadu, already a frontrunner in India's EV push, is poised to benefit significantly from VinFast’s presence, reinforcing its image as South Asia’s EV manufacturing powerhouse.

World-Class Facility with Modern Infrastructure

Spread across 400 acres, the Thoothukudi facility incorporates advanced automation and is fully integrated with:

  • Body shop

  • Paint shop

  • Assembly line

  • Quality control centre

  • Logistics hub

  • Auxiliary cluster for local vendors

These features ensure high production efficiency, product quality, and scalability. VinFast aims to leverage the facility’s capabilities to scale up production as demand grows, both domestically and internationally.

Job Creation and Economic Impact

The company projects that the plant will generate 3,000–3,500 direct jobs and many more indirectly through the EV supply chain. This initiative is expected to contribute significantly to the region’s economic growth, job creation, and skill development, making it a critical component of Tamil Nadu’s industrial ecosystem.

Initial Production Plans and Capacity

In the first phase, the plant will assemble two EV models: VF6 and VF7. These compact and mid-size electric SUVs are expected to cater to India's evolving EV market.

The facility will begin operations with an initial annual capacity of 50,000 units, which is scalable to 150,000 units in the future. This aligns with VinFast’s global ambition to:

  • Sell 200,000 EVs annually by 2025

  • Achieve 1 million EVs in annual production by 2030

CEO’s Statement on Strategic Vision

During the inauguration, Pham Sanh Chau, CEO of VinFast Asia, emphasized the plant's importance in VinFast’s India strategy.

“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 EVs to Indian consumers,” he stated.

He also shared plans to transform the plant into VinFast’s largest export hub catering to South Asia, the Middle East, and Africa. The company has already received initial international orders from these regions.

Building a Comprehensive EV Ecosystem

The Thoothukudi plant is part of VinFast’s broader integrated EV ecosystem in India, which covers:

  • Vehicle assembly

  • Distribution

  • After-sales services

  • Battery recycling

To support this, VinFast has partnered with several Indian companies including:

  • RoadGrid, myTVS, and Global Assure for digital tools and service operations

  • BatX Energies for battery recovery and circular manufacturing

These collaborations aim to ensure sustainability, customer satisfaction, and a smooth ownership experience for Indian consumers.

Looking Ahead: India as a Global Launchpad

VinFast’s new India facility represents more than just manufacturing—it serves as a launchpad for international growth, especially in emerging EV markets. With increasing global demand for sustainable mobility and India’s push toward electrification, VinFast is strategically positioned to become a leading player in the region.