Vinfast Beats Tesla To Set Up A Manufacturing Facility In India, Lays Foundation Stone In Tamil Nadu

• Vinfast lays foundation stone for manufacturing facility In Tuticorin, Tamil Nadu.

• The Vietnamese carmaker will invest USD 500 million (approximately Rs 4144 crore) over 5 years.

• The plant is projected to create up to 3500 employment opportunities

• Vinfast cars could first arrive as CBU units, followed by CKD units when the plant becomes active

New carmaker alert! Vinfast, a Vietnamese carmaker, has just signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up a manufacturing facility in Thoothukudi, Tamil Nadu. The Vietnamese carmaker beat American EV giant Tesla, its prime rival, and laid the foundation stone with a plan to invest USD 500 million (approximately Rs 4144 crore) in the first phase of the project (around five years).

This comes under Vinfast’s global expansion plans as it forays into the Indian market, which happens to be the third largest in the world. Not only will this move help the carmaker expand its touchpoints, but also create local opportunities with a projected 3,000 - 3,500 employment opportunities.

The plant, which spans across 400 acres of land with the state’s industrial estate (known as SIPCOT), will have an annual capacity of up to 150,000 units. Here’s what the Vinfast CEO Pham Sanh Chau had to say at the time of the ceremony: “VinFast's groundbreaking ceremony for its plant in Thoothukudi, Tamil Nadu, is a significant stride towards sustainable and green mobility in India. By establishing an integrated electric vehicle facility, the company's commitment to job creation, green transportation, and strategic partnerships solidifies VinFast’s position as a major player in the electric vehicle industry. This milestone strengthens the bonds between the robust economies of Vietnam and India, and underscores VinFast's dedication to a zero-emission transportation future, setting the stage for economic growth, innovation, and environmental sustainability in the region."

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Following the setup of the manufacturing facility, the carmaker plans to establish a nationwide dealer network. Understandably,  we are excited for things to unfold, given that the carmaker quickly climbed the ladder to establish itself as a bestseller across various segments in Vietnam. And being an EV-only brand, the carmaker has also emphasised on setting up charging networks in the country. 

Vinfast currently has two models – the VF8 and VF9 – that are sold in markets abroad, with a few upcoming models like the VF6 and VF7 in the pipeline, all of which are SUVs. Its cars have a claimed range starting from around 400 km, and considering they are all-electric vehicles, they do pack quite the punch. 

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A few of these could first be launched in India, likely in 2025, maybe as fully imported (CBU) units. Once the plant is operational, they could assemble those cars locally and price them competitively. More details on this front in the coming days.