Vinfast to Make EVs in India Eyeing Asia Exports

Vietnamese electric car producer Vinfast has started production at its USD 500 million factory in southern India's Tamil Nadu, a key milestone in its USD 2 billion Indian investment and overall Asian expansion strategy.

The plant, in the port town of Thoothukudi, will make 50,000 electric vehicles a year, scaling up to 150,000 units.

It is expected to provide more than 3,000 jobs in the local economy and augment India's efforts to emerge as a global hub of EV manufacturing.

"With this investment, there will be a whole new industrial cluster in south Tamil Nadu, and additional clusters are what India needs to become a world manufacturing hub," declared Tamil Nadu Industries Minister T.R.B. Raaja.

Key highlights:

• Vinfast kicks off EV production in Tamil Nadu with USD 500M plant

• Factory to produce 150,000 EVs in a year and to create 3,000 plus local jobs

• Targets exports to Asia, Middle East; launches VF6, VF7 in India

Vinfast chose Tamil Nadu after considering 15 locations in six Indian states, citing its automotive ecosystem, human resources, and strong infrastructure. The company also believes the location's access to a port is crucial for future exports to South Asia, the Middle East, and Africa.

India, the world's third-largest automobile market today, is an appealing opportunity because of its expanding economy, increasing EV adoption, and the encouraging government policies.

Also Read: Global shift towards electrification of the e-mobility sector

Even though it will have to contend with aggressive local competitors such as Tata Motors and Mahindra, Vinfast intends to launch its VF6 and VF7 SUVs later this year and has signed on 32 dealerships across 27 Indian cities.

"People would be hesitant at first, but if they price and service correctly, they can really do well." Said JMK Research's Vivek Gulia.

Vinfast will also localize the production of major components and partner with Indian counterparts for charging and maintenance.