VinFast Accelerates Global EV Expansion with Landmark Tamil Nadu Manufacturing Hub – EQ
In Short : VinFast has inaugurated a 400-acre electric vehicle (EV) plant in Thoothukudi, Tamil Nadu—its first manufacturing facility outside Vietnam. With an initial annual capacity of 50,000 units, the plant focuses on producing VF 6 and VF 7 SUVs. Backed by a \$500 million investment, the project is expected to create over 3,000 jobs and serve as a major export hub.
In Detail : VinFast, the Vietnamese electric vehicle (EV) manufacturer, has inaugurated its first manufacturing plant in India, located in Thoothukudi, Tamil Nadu. This marks the company’s first overseas production facility, strategically chosen to serve both the domestic Indian market and export regions such as South Asia, the Middle East, and Africa.
The plant spans 400 acres within the SIPCOT Industrial Park and has been developed with an investment commitment of up to \$2 billion. The facility’s construction was completed within 17 months of the MoU signing with the Tamil Nadu government, showcasing VinFast’s rapid execution strategy.
In its initial phase, the factory will assemble vehicles from completely knocked-down (CKD) kits, focusing on two EV models—the VF 6 and VF 7. These premium electric SUVs are expected to help VinFast gain traction in India’s fast-growing EV segment. The plant has an annual production target of 50,000 units, with future scalability up to 150,000 units.
The facility includes a range of advanced manufacturing sections such as a body shop, paint shop, assembly line, and a quality control center. It also houses a logistics hub and aims to develop a strong vendor ecosystem to promote local sourcing and component manufacturing.
VinFast has emphasized its intention to localize manufacturing over time. Discussions are ongoing with Indian suppliers to set up a supply chain that can support the plant’s long-term production and cost efficiency goals. The company plans to reduce reliance on imports and create a self-sustaining EV manufacturing base.
Employment generation is a key component of the project, with the company expecting to directly hire 3,000 to 3,500 workers. Thousands more jobs may be created indirectly through vendors, logistics, services, and other support activities in and around the region.
In addition to boosting local employment, the plant is expected to make Tamil Nadu an even stronger hub for electric vehicle manufacturing. The state has already attracted investments from other EV players, and VinFast’s entry adds significant weight to its industrial portfolio.
VinFast has also indicated plans to introduce its products across Indian dealerships soon. The VF 6 and VF 7 will be among the first models available, with the company planning to roll out a national sales and service network over time to support its expanding operations.
As global demand for clean mobility solutions continues to rise, VinFast’s Indian facility positions the company to play a significant role in the country’s transition to electric vehicles while also extending its reach across emerging markets.
