VinFast to Launch Construction of Its First EV Plant in India, Aiming to Rival Tesla

VinFast, a Vietnam-based electric vehicle (EV) manufacturer, is gearing up to start the construction of its first EV plant in India. The groundbreaking ceremony is scheduled for Sunday, February 25, marking a significant milestone for the company’s expansion into the Indian market. Located in Thoothukudi, Tamil Nadu, near Chennai, the facility represents a substantial investment of over ₹4,000 crore. This move positions VinFast as the second major Asian EV brand to venture into India, following BYD.

The upcoming VinFast manufacturing plant in Tamil Nadu is expected to generate employment for approximately 3,500 individuals. With an initial annual production capacity of 150,000 electric vehicles, the factory underscores VinFast’s commitment to not only cater to the Indian market but also to serve as an export hub for its EVs globally. The investment plan spans the next five years, focusing on local EV production and battery manufacturing, highlighting VinFast’s ambition to rival global EV leaders like Tesla.

VinFast’s entry into the Indian market comes at a time when Tesla, its global competitor, has seen a shift in its position as the world’s largest EV maker, recently overtaken by Chinese auto giant BYD. Despite being a relatively new player in the EV industry, VinFast has quickly emerged as a significant force, challenging established brands and seeking to capitalize on first-mover advantages in emerging markets.

Founded by Vietnam’s first billionaire, Pham Nhat Vuong, VinFast has rapidly expanded its footprint in the global EV market since its inception seven years ago. The company has a history of taking bold steps, such as acquiring a manufacturing facility from General Motors in Australia and announcing plans for a new plant in Indonesia. With its recent foray into the United States, including the opening of its first dealership and a $4 billion investment in a North Carolina manufacturing plant, VinFast is poised to make a lasting impact on the EV landscape with its range of electric cars and SUVs.