Vinfast opens assembly unit in Thoothukudi

Just a few days after opening its showroom in the state, Vinfast, the Vietnamese Original Equipment Manufacturer, has inaugurated its electric vehicle (EV) assembly plant at Thoothukudi in Tamil Nadu.

The company is planning to invest ₹16,000 crore in the assembly unit, with ₹4,300 crore in the first phase. 

Inaugurated by Tamil Nadu Chief Minister M K Stalin, the new EV plant will be Vinfast’s third operational plant in India and the fifth project in the company’s global manufacturing footprint. According to a top official, the company intends to establish Thoothukudi as an export hub and the "EV capital of South Asia."

According to Stalin, the plant was constructed in a record 17 months after the groundbreaking ceremony.

Citing Pham Sanh Chau, chief executive officer of VinFast Asia, Business Standard reported, “The VinFast Tamil Nadu plant marks a strategic milestone in our long-term commitment to the Indian market. It establishes a strong foundation for sustainable growth and positions us to offer high-quality, competitively priced electric vehicles to Indian consumers”.

The company's initial focus will be on assembling the VF 7 and VF 6 SUVs. As per reports, the plant's initial capacity is 50,000 vehicles annually, with the potential to scale up to 150,000 electric vehicles.

According to the company's statement, this milestone represents a significant step in VinFast's worldwide expansion, reaffirming the company's long-term commitment to the third-largest vehicle market in the world and highlighting VinFast's faith in India's critical role in the future of the global EV sector.

The company chose Tamil Nadu as its assembly location after inspecting 15 sites across six Indian states.

State industries minister, TRB Rajaa, said, “This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters are what India needs to emerge as a global manufacturing hub," Business Standard reported.