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‘Talent pool, location drew us to Tuticorin'

‘Talent pool, location drew us to Tuticorin'

Time of India2 days ago
Vietnamese electric vehicle (EV) major VinFast explored 15 sites in six states before finalizing its plant at Tuticorin in south Tamil Nadu. The facility, its first overseas factory, will initially assemble the VF 6 and VF 7 electric SUVs with an initial capacity of 50,000 units annually, scalable up to 1.5 lakh units a year.
It is expected to create up to 3,500 direct jobs, wherein 80%-90% of the total workforce will be absorbed from Tuticorin and its neighbouring district. Pham Sanh Chau, CEO, VinFast Asia, who oversees the expansion across key Asian markets including India, Indonesia and Philippines, spoke about the way forward. Excerpts:
 Why did VinFast choose Tuticorin, and how significant is this project for the region?
We chose Tuticorin because the city is close to the seaport and airport.
Moreover, the TN government is very supportive. This is the best location for automobile and EV manufacturing because the available talent pool is very good. We feel proud because this is our first plant outside VinFast's manufacturing facility in Vietnam. It carries a lot of sentiment for us. Tuticorin will produce advanced mobility solutions and smart transportation, not just for India, but for the whole world.
Customers had flown in from Sri Lanka and Nepal, and soon, we'll see them coming in from Bangladesh. The whole world, particularly the automobile industry, and even NASDAQ is watching us keenly. It's a matter of pride for Tuticorin.
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 How long did it take to
establish your first plant in Vietnam and the one in
Tuticorin?
The first facility (in Vietnam) was established in 21 months with a capacity of 3,00,000 cars. The factory at Tuticorin has come up in 15 months.
 How are you handling component manufacturing?
Currently, we are importing all components from Vietnam. We are planning to develop the supplier park here in such a manner that many vendors will move closer to us to create a supply chain ecosystem.
 What are the plans to upgrade the Tuticorin plant?
If we want to bring down the cost, and be one of the leaders in the Indian market, we must shift to a full-fledged manufacturing facility.
So, at this stage it is still a completely knocked down model (CKD) as we need to test the market (CKD refers to products shipped in a disassembled state, with all parts separate, ready for assembly at the factory). We need to operate our network and bring in local partners. We will be moving to a full fledged manufacturing facility.
However, we don't have a time frame for that. We have the target to be one of the leaders in the Indian EV industry.
 How does the plant meet its water requirements?
Firstly, we need to store water. The Tamil Nadu govt has made a commitment to provide the necessary support. Even rainwater can be harvested. So, this will not be an issue for us.
 How was the response for the pre-bookings of the premium electric SUVs, the VF 6 and VF 7 and when will deliveries begin? Where will EVs from Tuticorin be exported?
At the moment, online pre-booking looks encouraging. The momentum will surge the day we launch the car, announce the features and price. That will be a moment of truth and it will determine the ratio of domestic consumption to export consumption. We will start delivery of EVs this month onward. For exports, we are looking at markets in India's neighbouring countries, the Middle East and Africa.
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