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VinFast opens EV plant in Tamil Nadu, plans South Asia export dominance
Shine Jacob Chennai
Vietnamese electric vehicle (EV) major VinFast on Monday officially inaugurated its EV assembly plant at the SIPCOT Industrial Park in Thoothukudi, Tamil Nadu. The plant will see phased investment of up to Rs 16,000 crore.
The company aims to develop Thoothukudi as an export hub and position it as the "EV capital of South Asia", a senior executive said.
VinFast Tamil Nadu is the company's third operational facility and its fifth project in the global manufacturing network. In its initial phase, the plant will assemble two premium electric SUV models—the VF 7 and VF 6. The starting capacity is 50,000 vehicles per year, scalable up to 150,000 units annually to meet rising demand.
The facility was inaugurated by Tamil Nadu Chief Minister M K Stalin. In a statement, the company called the opening a major step in its global expansion, reaffirming its long-term commitment to India—the world's third-largest automobile market.
"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.
This is the company's first facility inaugurated outside Vietnam. With a total area of 400 acres, the plant features state-of-the-art production lines equipped with advanced automation and cutting-edge technologies. The complex houses a Body Shop, Paint Shop, Assembly Shop, Quality Control Centre, Logistics Hub, and an auxiliary cluster for local contractors, which is expected to expand in coming years.
Thousands of jobs and a push for localisation
At full capacity, the facility is expected to create 3,000–3,500 direct jobs and thousands of indirect opportunities across the supply chain. VinFast said this will boost socio-economic development in Tamil Nadu and help position the state as a manufacturing hub and potential EV capital of South Asia.
The company also reaffirmed its 2025 sales target of 200,000 vehicles and long-term production goal of 1 million vehicles per year by 2030.
"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.
Strategic partnerships to build a local EV ecosystem
VinFast's Tamil Nadu plant strengthens its global production capabilities while contributing to India's green industrial development. The facility will prioritise collaboration with domestic suppliers to promote supply chain localisation, technology transfer, and workforce upskilling.
Since entering India, VinFast has been developing a comprehensive EV ecosystem encompassing assembly, distribution, after-sales services, and recycling. The 400-acre Tamil Nadu facility is central to this strategy.
In parallel, the company has partnered with dealer groups in key cities and collaborated with RoadGrid, myTVS, and Global Assure to establish a robust digital services and after-sales network. It has also joined hands with BatX Energies for battery recovery and reuse, supporting circular production and sustainable development in India.
VinFast, a subsidiary of Vingroup JSC—one of Vietnam's largest conglomerates—is a pure-play EV manufacturer with a mission to make EVs accessible to all. Its product portfolio includes electric SUVs, e-scooters, and e-buses.
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