Challenging Tesla in the fast-lane of electric mobility, VinFast races into India with $2 billion Tamil Nadu plant, 3500 jobs, and EV rollout by 2026.
Vietnamese electric vehicle (EV) maker VinFast is set to inaugurate its car assembly plant in Tamil Nadu by the end of June, according to CEO Pham Sanh Chau. The announcement was made during a shareholder meeting of VinFast’s parent company, Vingroup.
The facility, located in Thoothukudi, marks a $2 billion investment, with an initial $500 million allocated for the first phase. The site is expected to manufacture up to 150,000 vehicles annually, with production set to begin in 2026.
VinFast aims to develop a complete EV ecosystem around the plant. This includes battery production and nationwide charging infrastructure. Meanwhile, V-Green, an associated company, is seeking co-investors to expand the charging network.
According to a report by the Business Standard, Thoothukudi was chosen for its strategic proximity to a seaport and airport, which supports both domestic distribution and exports. Pham Sanh Chau confirmed that India will serve not only its own market, but also West Asia and Africa.
The project is anticipated to create between 3000 and 3500 jobs locally.
VinFast’s focus is shifting beyond Vietnam, targeting emerging markets such as Indonesia, India, and the Philippines. At the Bharat Mobility Global Expo 2025, the company showcased two premium electric SUVs – the VF 6 and VF 7 – scheduled to launch later this year in India.
On the other hand, its rival Tesla is accelerating its entry into India. CEO Elon Musk has held discussions with Prime Minister Narendra Modi, with a visit planned later in 2025. The company has already leased office space in Pune and posted job openings in Mumbai and Delhi.
