VinFast Inaugurates India Plant, Bolstering Asian EV Strategy

Vietnamese automaker VinFast officially inaugurated its electric vehicle (EV) assembly plant in Thoothukudi, India, marking a pivotal step in its global expansion and its broader strategy to focus on the burgeoning Asian market. The new facility, located in the SIPCOT Industrial Park in the southern state of Tamil Nadu, is the company’s third operational plant and its first outside of Vietnam.

The opening of the 400-acre plant is a cornerstone of VinFast’s $2 billion investment commitment in the Indian market. The facility is equipped with state-of-the-art production lines and includes a Body Shop, Paint Shop, Assembly Shop, and Quality Control Center. It will initially assemble the VF 7 and VF 6 electric SUV models with a starting capacity of 50,000 vehicles annually, with the potential to scale up to 150,000 units per year. At full capacity, the plant is expected to create up to 3,500 direct jobs, contributing to socio-economic development in the region.

Speaking on the inauguration, Pham Sanh Chau, CEO of VinFast Asia, stated:“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. 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.”

VinFast’s move into India is part of a larger pivot toward Asia, where the company is establishing a foothold in other key markets. In Indonesia, VinFast has broken ground on a $200 million EV assembly plant with an annual production target of 50,000 cars. The company is also expanding its presence in Thailand and the Philippines. In its home country of Vietnam, VinFast is ramping up production to meet a burgeoning domestic market where the government aims for electric vehicles to make up 18-20% of total sales by 2030.

While VinFast’s Asian strategy gains momentum, its plans for a plant in the United States have faced delays. The company has postponed the start of production at its planned $4 billion factory in New Hill, North Carolina, until 2028, citing challenging economic conditions. The plant was originally slated to begin production in 2024 with a capacity of 150,000 vehicles annually.

Despite the U.S. delay, VinFast remains committed to its long-term goals. The company aims to deliver 200,000 vehicles globally by the end of 2025 and is targeting a production capacity of 1 million vehicles per year by 2030. According to Pham Sanh Chau, CEO of VinFast Asia, the new India plant is a key part of this vision, serving as an “export hub for South Asia, the Middle East, and Africa.” He noted that the company has already secured initial orders from several countries in those regions.

To support its expansion, VinFast is building a comprehensive EV ecosystem. In India, it has partnered with local companies for after-sales services, charging infrastructure, and battery recycling. This localization strategy, which includes collaborating with domestic suppliers, is seen as crucial for competing in a market that is cost-conscious and rapidly adopting electric vehicles.