VinFast Targets June Launch for $2 Billion EV Plant in Tamil Nadu

Vietnamese electric vehicle (EV) manufacturer VinFast is on track to commence operations at its first Indian assembly facility in Tamil Nadu by the end of June, marking a significant step in the company’s strategic expansion across Asia. The development was confirmed by Pham Nhat Vuong, Chairman of Vingroup and CEO of VinFast, during the company’s shareholders' meeting held on April 24. Vuong stated that the Tamil Nadu plant, located in Thoothukudi, is expected to be operational within the next two months, while a separate facility in Indonesia is scheduled for launch by October.

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“In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines,” Vuong said, as quoted by Reuters. “At the moment, VinFast is not planning to boost sales in the United States, Canada, and the European Union due to high logistics costs.”

The India facility represents a key component of VinFast’s broader expansion strategy in the Asia-Pacific region, following a pause in its North American manufacturing ambitions. The company previously announced plans to invest up to $2 billion in the Indian market, with an initial commitment of $500 million over the first five years. The integrated EV plant in Thoothukudi is expected to have an annual production capacity of up to 1.5 lakh vehicles and generate between 3,000 and 3,500 local jobs.

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Thoothukudi was selected for its strategic location, offering access to both a major seaport and airport, facilitating both domestic distribution and international exports. VinFast Asia CEO Pham Sanh Chau previously noted that the plant will serve not only the Indian market but also emerging markets in West Asia and Africa.

At the Bharat Mobility Global Expo earlier this year, VinFast unveiled two premium electric SUVs—the VF 6 and VF 7—designed specifically for Indian consumers. These models are anticipated to launch in India later in 2025.