VinFast to Invest $2 Billion in Tamil Nadu Plant for India EV Entry

India’s electric vehicle (EV) manufacturing landscape received a major boost as Vietnamese auto major VinFast operationalized its $2 billion facility in Thoothukudi, Tamil Nadu — the fastest scale-up by a foreign carmaker in the country. The plant, VinFast’s first in India and third globally, was commissioned within 17 months of signing an agreement with the Tamil Nadu government.

Located on a 400-acre land, the plant was launched by the Tamil Nadu Chief Minister MK Stalin, who pointed out that the state contributes 40 percent of India's EV manufacturing. As of 2022 to date, VinFast has invested 1,300 crore in the facility and it is aiming to initially produce 50,000 units of electric SUVs (including VF 6 and VF 7 models) a year. A full capacity facility will yield 150,000 vehicles annually and have the ability to hire up to 3,500 employees.

VinFast is planning India as an export and manufacturing hub in the first place, with Sri Lanka, Nepal, Mauritius, and Bangladesh being amongst the initial buyers. The company has opened pre-bookings for VF 6 and VF 7 at ₹21,000 and launched retail operations, starting with showrooms in Surat and Chennai.

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“We feel very, very proud because this is the first manufacturing facility outside Vietnam,” said Pham Sanh Chau, CEO of VinFast Asia. “We aim to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa.”

Backed by partnerships for battery recycling, service networks, and dealership expansion, VinFast aims to establish 35 outlets across 27 cities by year-end, strengthening Tamil Nadu’s status as India’s EV capital.