Vietnamese electric vehicle manufacturer VinFast, a notable competitor to US-based Tesla, has announced plans to inaugurate its assembly plant in Thoothukudi, Tamil Nadu, by the end of June.
The information was shared by Pham Sanh Chau, the company's Chief Executive Officer.
The company has committed to investing $2 billion in the Indian facility, with the initial phase involving a capital deployment of $500 million. Once fully operational, the plant is expected to produce up to 150,000 electric vehicles annually. The start of production is currently slated for 2026.
VinFast is expanding its footprint beyond its home market in Vietnam and now considers India, Indonesia, and the Philippines as its key areas of focus. Addressing shareholders of its parent firm Vingroup, VinFast founder Pham Nhat Vuong reaffirmed this strategic shift in geographical priorities.
The Tamil Nadu facility will be more than just an assembly plant. It aims to become a hub for a comprehensive electric vehicle ecosystem.
This will include local battery manufacturing and the installation of charging stations across the country. V-Green, a VinFast group company, will take the lead in developing the charging infrastructure and is actively seeking co-investors for this purpose.
Explaining the choice of Thoothukudi as the site, Chau cited its logistical advantages. “Thoothukudi was chosen due to its proximity to both a seaport and an airport, which facilitates export operations. We intend to serve not just the Indian market, but also West Asia and Africa,” he said.
VinFast currently operates two factories in Vietnam with capacities of 50,000 and 100,000 vehicles, respectively. The Indian plant is expected to generate employment for approximately 3,000 to 3,500 people locally.
At the Bharat Mobility Global Expo 2025, VinFast unveiled two premium electric SUVs—VF 7 and VF 6—for the Indian market. These models are expected to be launched later this year, signalling the company's serious intent to capture a share of India’s burgeoning EV segment.
Meanwhile, Tesla, led by Elon Musk, is also ramping up efforts to enter the Indian market. Discussions have accelerated under the current US administration, with Musk reportedly enjoying close ties with former President Donald Trump.
Earlier this year, Musk met Prime Minister Narendra Modi during the latter’s US visit to discuss potential business opportunities in India. The two also had a follow-up phone call recently, after which Musk announced his plans to visit India later this year.
Tesla has already leased office space in Pune and began recruiting in February, advertising for 13 positions across Mumbai and Delhi.
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