DURING THE LAUNCH of its electric car assembly plant in Thoothukudi, Tamil Nadu, VinFast Asia CEO Pham Sanh Chau spoke with emotion and pride. “This marks VinFast’s very first manufacturing facility outside Vietnam, and it holds profound significance for us. Vietnam has weathered decades of hardship. To now craft world-class, sustainable vehicles in Thoothukudi is extraordinary, for us and for the shared journey of our two nations,” he said.
FROM BARREN LAND TO EV HUB
Fifteen months ago, the site was just 400 acres of empty land. Today, it’s a fully operational EV assembly plant capable of producing vehicles for both domestic and export markets. VinFast scouted 15 sites across six states before zeroing in on Thoothukudi. The company cited infrastructure potential, government incentives and long-term scalability as key factors. “The journey to finding the perfect location involved extensive due diligence. In the end, Tamil Nadu emerged with all the right answers,” Chau said.
This plant is a significant addition to the state’s efforts to attract large-scale investments, especially in regions historically overlooked by industrial projects. Both the DMK and AIADMK governments in the state have tried in the past to push development into the southern part of the state. VinFast’s entry may finally bring those ambitions to fruition.
ASSEMBLY OF AMBITIONS
In its first phase, the plant can assemble 50,000 vehicles a year, scalable to 150,000 units. VinFast aims to gradually transition to full-scale manufacturing to cut costs and enhance local competitiveness. The upcoming investments to establish local stamping operations will help achieve it. The company has already invested over Rs 1000 crore and plans an additional Rs 4000 crore to expand. Battery systems, critical to EV manufacturing are currently being imported from VinFast Group’s battery arm, VinES Energy Solutions(VinES) in Vietnam. Indian startup BatX Energies will support battery recycling initiatives.
Over 220 people from the Thoothukudi region have already been hired and the company estimates that direct employment could reach up to 3500 once the plant reaches full capacity. Thousands of indirect jobs are also expected to be generated across the supply chain.
PREMIUM EVs LEAD THE CHARGE
VinFast will begin Indian operations with assembly of its VX7 and VX6 electric SUVs and deliveries will start in August. India’s EV passenger vehicle market remains small – roughly 15,000 units a month out of 4 lakh-plus car sales. But VinFast sees the long-term potential. “We believe the future of EVs is irreversible. This is no longer about choice. It’s about necessity,” said Chau, referring to climate imperatives. He also noted that VinFast is well-prepared to meet demand surges, with suppliers holding reserves sufficient for 50,000 units. The ongoing shortage of rare earth magnets, he added, is not expected to impact VinFast’s near-term plans in India.
Chau praised Indian car buyers for their deep engagement. “They don’t just buy for the badge. They understand the machine, value design, and believe in its future,” he said. What struck him most was the level of involvement Indian buyers bring to the table. “They offer thoughtful, constructive feedback — ‘I like this feature,’ ‘This one doesn’t work,’ ‘You should include this.’ It’s a real contribution to how the product evolves,” he observed. “In some other markets, customers often buy for the brand or chase discounts, with little thought for the features or the future of the car,” Chau added.
VinFast has already opened a few showrooms and aims for 35 dealerships in 27 cities by end-2025. It has partnered with RoadGrid, myTVS and Global Assure to set up national after-sales and charging infrastructure.
“Success depends on three things: quality vehicles, affordable pricing and a strong after-sales ecosystem,” Chau said. The company’s long-term goal includes making India a key export hub, supported by deep localisation and a sustainable supply chain.