VinFast Launches EV Plant in India, Eyes Local Sourcing Boost

VinFast Launches EV Plant in India, Eyes Local Sourcing Boost

Vietnamese electric vehicle manufacturer VinFast has launched production at its first-ever overseas factory, located in southern India, marking a pivotal milestone in its global EV expansion strategy. The Thoothukudi facility, VinFast’s first production hub outside Vietnam, has commenced operations with an initial annual capacity of 50,000 SUVs, which can be scaled up to 150,000 units in the future. 

The plant—established under a plan that could total $2 billion in investment—began with a committed outlay of $500 million over the next five years. Reuters At present, it’s assembling two premium electric SUV models, the VF 6 and VF 7, and the firm is finalizing preparations for delivering early units to showrooms by the end of the month.

A key focus for VinFast in India is strengthening its local supply chain. The company is currently in discussions with several component suppliers—including some previously based in Vietnam—that are exploring options to relocate or expand manufacturing to support the new facility. 

While the plant has already secured export orders from nearby markets such as Sri Lanka, Nepal, and Mauritius, the company’s immediate priority remains meeting demand domestically. The India plant is viewed as a potential export gateway for South Asia, the Middle East, and Africa. 

For VinFast, success in India is critical to achieving its 2025 global delivery target of 200,000 vehicles, especially as the automaker has so far sold around 72,100 units in the first half of the year, predominantly within Vietnam.