Vietnamese electric vehicle (EV) manufacturer VinFast is on track to inaugurate its car assembly plant in Tamil Nadu, India, by the end of June, as confirmed by the company's CEO, Pham Sanh Chau, according to a Reuters report.
This strategic move underscores VinFast's increasing focus on key Asian markets beyond Vietnam. Pham Nhat Vuong, Chairman of VinFast's parent company Vingroup, informed shareholders, "In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines markets."
VinFast, a Nasdaq-listed competitor to American EV behemoth Tesla, had previously selected Thoothukudi in Tamil Nadu for its ambitious $2 billion manufacturing facility. The initial phase of this significant project will involve a $500 million investment, with the plant projected to achieve an annual production capacity of up to 150,000 vehicles. The commencement of EV production at the facility is anticipated in 2026.
Beyond vehicle assembly, VinFast envisions establishing a comprehensive EV ecosystem in India. This includes the development of battery manufacturing capabilities and the establishment of a widespread network of charging stations across the country. V-Green, a related entity within the Vingroup ecosystem, will actively seek co-investors to bolster the development of this crucial charging infrastructure.
Explaining the strategic rationale behind choosing Thoothukudi, CEO Pham Sanh Chau highlighted the location's logistical advantages in January. "We selected Thoothukudi since it is close to the seaport and airport, which will allow us to export. We have two factories in Vietnam — one is 50,000 and another around 100,000. We are looking at India for the domestic market, West Asia, and Africa," he stated.
VinFast's integrated electric vehicle facility in Tamil Nadu is expected to generate significant local employment, with an estimated 3,000 to 3,500 job opportunities on the horizon.
Further demonstrating its commitment to the Indian market, VinFast showcased two all-electric premium SUVs, the VF 7 and VF 6, at the Bharat Mobility Global Expo 2025. These models are slated for launch in the Indian market later this year, signaling VinFast's intent to compete in the premium EV segment.
Tesla's Parallel Interest in India
Meanwhile, Tesla, led by Elon Musk, is also actively exploring entry into the Indian market. Discussions surrounding this have reportedly gained momentum under the current US administration.
Earlier this year, Tesla's CEO met with Indian Prime Minister Narendra Modi during the latter's visit to the United States, where they discussed potential avenues for bringing Tesla's ventures to India. Following a recent phone conversation, Musk announced his plans to visit India later this year, further indicating Tesla's serious consideration of the Indian market.
In a preliminary move, Tesla has leased a 5,850-square-foot office space in Pune. The company initiated hiring in India in February of this year, advertising at least 13 job positions in Mumbai and Delhi. This activity suggests that Tesla is laying the groundwork for a potential operational presence in the country.