The new factory, which was inaugurated by Tamil Nadu Chief Minister M.K. Stalin, rolled out its first set of locally-built models — the VF 6 and VF 7.
“About 40 per cent of India’s total electric vehicle production is happening right here in Tamil Nadu! I proudly say that Tamil Nadu is the ‘capital’ of both vehicle manufacturing and electric vehicle production in India! Chennai is the Detroit of India,” said Stalin.
“Just as the first car manufacturing project was started in Sriperambudur, today, the first electric vehicle manufacturing project has been launched in Thoothukudi! This will enhance the trade and economic development between Tamil Nadu and Vietnam,” said Stalin. The Tamil Nadu chief minister, it may be recalled, laid the foundation stone in September 2024 for Tata JLR’s electric vehicle production in Ranipet district, near Chennai.
The Thoothukudi factory, built with an initial investment of Rs 1,300 crore, is VinFast’s third operational plant and the fifth project in its global manufacturing network.
The new e-car factory is situated on a 400-acre site. “In just 15 months, we transformed a protected, low-lying countryside into a state-of-the-art, highly automated factory — creating jobs, boosting local economies and contributing to the region’s growth,” said VinFast Asia CEO Pham Sanh Chau.
In its initial phase, VinFast will focus on assembling two premium electric SUV models – the VF 7 and VF 6. The plant’s starting capacity is 50,000 vehicles per year, scalable up to 150,000 units annually to meet rising market demand.
Currently, more than 220 people from the region have been hired for assembly and associated operations. At full capacity, the plant will create 3,000–3,500 direct jobs for local workers, along with thousands of indirect jobs in the supply chain ecosystem.
VinFast has already begun accepting pre-bookings in the Indian market for locally-built VF 6 and VF 7 models.
With the launch of a few showrooms already, the company aims to open 35 dealerships in over 27 cities across India by the end of 2025.
Chau said that the India-assembled EVs would be exported to neighbouring countries such as Sri Lanka, Mauritius and Nepal, as well as to South Asia, Africa and the Middle East.
