VinFast officially opens electric vehicle manufacturing plant in Tamil Nadu, aiming for an annual production capacity of 150,000 units.
VinFast Kicks Off EV Assembly Plant in Tamil Nadu, Aiming for Global Dominance
Vietnamese electric vehicle (EV) manufacturer VinFast has inaugurated its first EV assembly plant in Tamil Nadu, India, marking a significant step towards its goal of becoming a major global EV player. The 400-acre facility, part of a $2 billion investment strategy, has an initial capacity of 50,000 vehicles per year, expandable to 150,000 units.
The Tamil Nadu plant, which will produce electric SUVs such as the VF 6 and VF 7, is expected to directly create 3,000-3,500 jobs and indirectly generate more through its supply chain. The company aims to sell 2,00,000 cars worldwide in 2025 and increase annual production to 10 lakh EVs by 2030.
VinFast's broader plan by 2030 is to establish itself as a major global EV manufacturer, with a strong focus on India and export markets like South Asia, the Middle East, and Africa. The company's CEO, Pham Sanh Chau, stated that the Tamil Nadu factory will be the company's largest export base serving multiple high-growth markets.
The Tamil Nadu facility will provide full integration of production processes, including body shop, paint shop, assembly lines, quality control, a logistics center, and a local contractor auxiliary cluster. Beyond assembly, VinFast plans to control distribution, after-sales, battery recovery, reuse, and end-of-life recycling, promoting circular manufacturing and environmental sustainability.
VinFast is also developing an integrated EV ecosystem in India, covering distribution, after-sales services, and battery recycling. The company has partnered with RoadGrid, myTVS, Global Assure, and BatX Energies for service and support infrastructure, battery recovery, and reuse.
The partnership with BatX Energies is part of VinFast's commitment to circular economy practices. Technology transfer and human resource development are also key components of VinFast's plans for the Tamil Nadu facility.
VinFast aims to turn the Tamil Nadu factory into a strong foundation for its long-term growth in India and beyond. The facility's operations align with India's industrial upskilling and green mobility aspirations. However, the operations are not explicitly mentioned to contribute to indigenous sourcing and partnerships with suppliers, as previously stated.
The company has already received initial export orders from several countries in the mentioned regions. VinFast's strategy includes manufacturing scale-up, localisation & workforce development, market penetration & export hub ambition, and partner ecosystem. The company is developing Tamil Nadu as “the EV capital of South Asia,” simultaneously serving India’s growing EV market and exporting to nearby regions, thus leveraging first-mover advantages amid rising EV adoption.
- VinFast, with a focus on India and export markets, is aiming to become a major global player in the automotive industry, specifically in the manufacturing of electric vehicles (EVs).
- Finance is an integral part of VinFast's strategy, with a $2 billion investment planned for their Tamil Nadu facility, which has an initial capacity of 50,000 EVs per year, expandable to 150,000 units.
- Transportation is another key area, as the Tamil Nadu plant will produce electric SUVs for a global market, with the potential to create thousands of jobs directly and indirectly.
- Technology is crucial for VinFast's plans, as they aim to control distribution, after-sales, battery recovery, reuse, and end-of-life recycling, promoting circular manufacturing and environmental sustainability.
- Lifestyle choices are being influenced by the increased adoption of electric vehicles, and VinFast's strategy in India includes building an integrated EV ecosystem and partnering with companies for service and support infrastructure, battery recycling, and technology transfer.
