, Vietnam’s fast-growing electric vehicle manufacturer, has officially broken ground on its first production facility in India. The move signals a major milestone in the company’s $2 billion expansion into Asia, as it pivots focus away from difficult Western markets and doubles down on more promising opportunities across the region.
The groundbreaking ceremony was held at the upcoming plant in Thoothukudi, Tamil Nadu. VinFast plans to invest $500 million in the first phase of construction, with the goal of producing 50,000 electric vehicles annually. The site has capacity to scale up to 150,000 units in the future. Located near a key port, the facility is expected to serve as a major export hub for South Asia, the Middle East, and Africa.
A Shift in Strategy After Struggles Abroad
VinFast’s entry into India marks a larger strategic redirection for the company. After facing hurdles in penetrating the U.S. and European markets, the automaker is now targeting Asia as its primary growth region. While VinFast reported selling nearly 97,000 vehicles in 2024—a threefold increase from the previous year—90% of those sales were domestic. Western sales remained minimal despite heavy investments.
Now, with the Indian market on its radar, VinFast has opened its first two retail showrooms in Surat and Chennai and plans to expand to 35 dealerships across 27 cities by the end of the year. Pre-bookings for the VF 6 and VF 7 electric SUVs began on July 15, requiring a refundable deposit of ₹21,000. India will also be the first country to receive right-hand drive versions of both models.
Boosting Local Economy and Manufacturing
The Thoothukudi plant is expected to generate 3,000 to 3,500 new jobs, with a strong emphasis on local sourcing and supply chain development. VinFast scouted 15 sites across six Indian states before selecting Tamil Nadu, thanks to its well-established automotive ecosystem and skilled workforce.
Tamil Nadu Industries Minister T.R.B. Raaja praised the move, stating that VinFast’s investment will trigger the creation of an entirely new industrial cluster in the region. He emphasized the importance of such clusters in India’s journey to becoming a global manufacturing powerhouse.
Once operations begin, the vehicles will be assembled locally, reinforcing India’s “Make in India” vision and increasing affordability for consumers.
Building a Support Ecosystem
To support its expansion, VinFast is building partnerships across the Indian mobility ecosystem. The company is working with RoadGrid for EV charging infrastructure, and with myTVS and Global Assure to provide after-sales services. Executives also confirmed that VinFast is evaluating sites in Telangana and Andhra Pradesh for additional facilities in the future.
With its new Indian operations underway, VinFast hopes to cement its place in the global EV landscape by tapping into one of the world’s fastest-growing automobile markets—bringing with it jobs, investment, and a new wave of electric mobility.
