VinFast Opens Manufacturing Facility in Tamil Nadu with Ambitious Growth Plans
VinFast has officially opened its first manufacturing facility in India, setting the stage for a new chapter in the country’s electric vehicle (EV) industry. The Vietnamese automotive leader inaugurated its plant in Sillanatham, Thoothukudi district, marking the start of a project valued at Rs 16,000 crore (approximately USD 2 billion).
Tamil Nadu Chief Minister M.K. Stalin, who presided over the inauguration, described the move as a major milestone for the state. He said Thoothukudi is now firmly positioned on the global automotive map, with the state’s automobile prowess expanding beyond the traditional hub of Chennai.
A Strategic Boost to India’s EV Manufacturing Capabilities
The sprawling 408-acre plant is VinFast’s first integrated EV and battery production facility in the country. It will initially produce 50,000 vehicles annually, with plans to scale up to 1.5 lakh units in the coming years. The facility is expected to create over 3,500 direct jobs within the next five years, alongside thousands of indirect opportunities through the development of local supply chains.
VinFast’s India strategy goes beyond serving the domestic market. The Thoothukudi facility will also act as a regional export hub, targeting markets in South Asia, the Middle East, and Africa. According to VinFast Asia CEO Pham Sanh Chau, confirmed orders from multiple countries are already in the pipeline.
Why Thoothukudi Was Chosen for VinFast’s India Base
Locating the facility in Thoothukudi is part of Tamil Nadu’s broader plan to spread industrial growth beyond congested zones. The port city offers excellent connectivity, ample land availability, and logistical advantages for both domestic and export operations.
This aligns with the state government’s vision of creating balanced industrial growth and job opportunities across all districts. Chief Minister Stalin also invited VinFast’s parent company, Vingroup, to explore investments in other sectors such as real estate, hospitality, and education within Tamil Nadu.
A Global Challenger to Tesla and BYD
VinFast is entering the Indian market at a time when EV adoption is accelerating and competition is intensifying. The company aims to compete directly with global giants such as Tesla and China’s BYD. Unlike Tesla, which is still negotiating import duty concessions, VinFast has already begun production on Indian soil.
Tamil Nadu Industries Minister TRB Rajaa noted that the speed of the project’s execution was unprecedented. Construction began just 50 days after signing an MoU with the state government in January 2024, and production started less than 15 months later.
Impact on Tamil Nadu’s EV Ecosystem
VinFast’s entry is expected to strengthen Tamil Nadu’s position as India’s electric mobility hub. The state already accounts for over 40% of planned EV investments in the country. Major players like Tata Motors–Jaguar Land Rover are setting up EV facilities in nearby districts, further building a strong network of manufacturing and supply capabilities.
A suppliers’ park is already being planned near the Thoothukudi facility to support VinFast’s operations, which will further stimulate local economic activity and create a ripple effect of growth in the region.
Skill Development and Job Creation
The company has also tied its hiring plans to Tamil Nadu’s ‘Naan Mudhalvan’ skill development initiative, ensuring that local talent is trained for jobs in the EV sector. This will help bridge the gap between emerging technology needs and workforce readiness. Also Read: Mumbai Police Enhance Kapil Sharma Security After Bishnoi Gang Threats
VinFast’s new facility in Tamil Nadu represents more than just another car plant it’s a statement about India’s growing role in the global EV market. With significant investment, large-scale job creation, and an export-focused strategy, the company is poised to be a major player in the years ahead. For Tamil Nadu, it’s another win in its bid to be the nation’s leader in electric mobility.
