Vietnam’s VinFast expanded its operations to India, inaugurating its first overseas plant in Tamil Nadu. The launch will be accompanied with the sale of the VF 6 and VF 7 models, to be distributed by India’s authorised dealers.
VINFAST’S FIRST OVERSEAS PLANT
The 500 million USD (769 million AUD) plant is part of VinFast’s 2 billion USD (3 billion AUD) investment in India. Built in Thoothukudi, in the state of Tamil Nadu, the plant’s location was chosen after a careful look at India’s 15 states. Tamil Nadu is home to India’s local automotive industry, housing “strong manufacturing, skilled workers, good infrastructure, and a reliable supply chain.”
“This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters is what India needs to emerge as a global manufacturing hub,” said Tamil Nadu minister T.R.B. Raaja. The deal bodes well for both the country and VinFast itself, who hope to distribute India-made vehicles globally.
The new plant has a production capacity of 50,000 EV units per year. The EV maker is hoping to source its parts locally, receiving orders from nearby countries Sri Lanka, Nepal and Mauritius. Eventually, VinFast hopes to turn this newly-opened plant into VinFast’s pan-Indian export hub.
VINFAST AUTO INDIA
India is the first stop for VinFast’s continental expansion across Asia. Operating under the name VinFast Auto India, the newest addition to the VinFast family will cooperate with 13 dealer groups to open 32 dealerships around the country. VinFast will establish showrooms in the following cities; Delhi, Gurugram, Noida, Chennai, Bengaluru, Hyderabad, Pune, Jaipur, Ahmedabad, Kolkata, Kochi, Bhubaneswar, Thiruvananthapuram, Chandigarh, and Lucknow.
“These cities have been strategically selected based on their growing EV adoption, supportive infrastructure development, and strong demand potential for new-energy mobility solutions,” said VinFast in a company statement.
In addition to a plant and a network of showrooms, part of VinFast’s India expansion is an EV ride-hailing service.
VINFAST’S GOALS
The opening of their first overseas plant is part of VinFast’s broader Asian strategy. After to failing to capture the American and European markets, the company shifted its focus closer to home. Rather than going intercontinental right away, VinFast is centering is strategy on capturing the broader Asian market instead.
Similarly, VinFast announced earlier this year that it would also expand operations to Indonesia. Its Indonesia base will serve as its export hub for the Southeast Asian region, while the Indian base will be key to South Asia, the Middle East, and Africa.
VinFast’s year-end goals include the delivery of 200,000 cars, 35 showrooms in India, and the opening of its facility in Indonesia. So far, the EV maker has sold 72,100 cars for the first half of 2025 in Vietnam.
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