Vietnamese electric vehicle manufacturer VinFast is set to inaugurate its inaugural manufacturing facility in India, focusing on the production of batteries for electric vehicles (EVs), according to three individuals familiar with the matter. The plant, located in the city of Thoothukudi in the southern state of Tamil Nadu, represents a strategic move by VinFast, positioning itself in the competitive Indian EV market.
One source mentioned that the facility would specifically concentrate on battery production, distinct from VinFast's prior announcement of plans to assemble vehicles using parts shipped from Vietnam. While the company declined to comment, an official announcement regarding the new plant is anticipated in the coming days, as confirmed by two sources.
VinFast, a key competitor against global automakers such as Tesla (TSLA.O) and China's BYD, has been expanding its presence in India. The company mentioned in a statement on Wednesday that it would disclose details of its plans at “an appropriate time.” In September, Reuters reported that VinFast had initiated hiring processes in India for roles in sales, legal, and back-office functions.
The investment size and the operational timeline for the VinFast factory in Tamil Nadu are yet to be disclosed. In October, the company had announced plans to establish assembly factories in India and Indonesia, each with a capacity of up to 50,000 cars per year and an initial capital expenditure of up to $200 million. Production is expected to commence in 2026.
VinFast CEO Le Thi Thu Thuy also revealed that Green SM, an electric vehicle taxi operator, mostly owned by VinFast's founder, is planning to establish a presence in India. The company is reportedly exploring the introduction of both e-scooters and e-cars to the Indian market.
Tamil Nadu, often referred to as the Detroit of Asia, is already home to several EV players, including Indian two-wheeler manufacturers Ola Electric and Ather, as well as China's BYD. The move into battery manufacturing aligns with the growing emphasis on the electric mobility segment in one of the world's largest automotive markets.