VinFast's $500M Indian Factory Officially Opens in Tamil Nadu

Vietnamese EV maker VinFast has commenced production at its ₹4,175 crore (USD 500 million) electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu, as part of a broader ₹16,700 crore (USD 2 billion) investment plan in India.

The plant will have an initial annual capacity of 50,000 electric vehicles, scalable up to 1.5 lakh units, and is expected to generate over 3,000 local jobs. Strategically located near a major port, the facility is poised to become a key export hub for VinFast.

Tamil Nadu, widely regarded as India’s automotive capital, was selected after VinFast evaluated 15 sites across six states, with the company citing the state's robust infrastructure, skilled talent pool, and established supply chain ecosystem as decisive factors.

Tamil Nadu Industries Minister TRB Raaja stated that the project is set to catalyze the development of a new industrial cluster in southern Tamil Nadu, supporting India's ambition to emerge as a global manufacturing powerhouse.

VinFast’s entry into India comes as part of its strategic pivot toward Asia amid headwinds in the US and European markets. The Thoothukudi facility will serve as a manufacturing base for exports to South Asia, the Middle East, and Africa, while also tapping into India’s rapidly growing EV market and benefiting from the country's favorable policy environment for clean mobility.

News by Rahul Yelligetti.