VinFast, the Vietnamese electric vehicle manufacturer, is rapidly expanding its global footprint with the launch of its first factory in India. The company is inaugurating its manufacturing facility in Thoothukudi, Tamil Nadu on July 31, 2025. This move signifies VinFast's commitment to the Indian market and its ambition to become a major player in the global EV industry.

The factory is located at the Tamil Nadu Industrial Promotion Corporation (SIPCOT) industrial park and is spread over 400 acres. VinFast is investing ₹4,000 crore (approximately $500 million) in the facility over a five-year period. The plant will have an annual production capacity of 150,000 units. This production capacity aims to meet the increasing demand for electric vehicles in India and potentially serve as an export hub for other markets in the future.

The factory is expected to generate 3,000 to 3,500 direct and indirect jobs, contributing significantly to the local economy. VinFast has already inducted the first group of 200 locally hired professionals at the Thoothukudi plant, demonstrating its commitment to creating employment opportunities in the region.

The initial focus of the Indian plant will be on localizing the production of the VF6 and VF7 electric SUVs. These models are slated for launch next month and are specifically designed as right-hand drive versions for the Indian market. Pre-bookings for the VF 6 and VF 7 officially opened on July 15, 2025, with a refundable booking amount of INR 21,000. The company has also opened its first showroom in Surat, Gujarat. The showroom, spanning 3,000 sq. ft., will offer product experiences, vehicle purchase options, and after-sales support. VinFast plans to establish 35 dealerships across 27+ cities by the end of the year.

VinFast's entry into India comes at a time when the country's electric vehicle market is experiencing substantial growth. With government support and increasing consumer awareness, the demand for EVs is expected to rise significantly in the coming years. By establishing a local manufacturing presence, VinFast aims to capitalize on this growth and offer competitive products to Indian consumers.

The move to establish a manufacturing plant in India reflects a strategic shift for VinFast, which initially focused on the American market. Slow progress in the United States, influenced by factors such as U.S. tariffs, prompted the company to broaden its focus and tap into the potential of the Asian market.

VinFast's product lineup for India includes the VF e34, VF 6, VF 7, VF 3, VF 9, and VF 8. The company is expected to adopt a top-down approach, introducing the fully loaded VF9 model first to establish the brand before launching smaller, more affordable models. These vehicles will compete with established players like Volkswagen, Hyundai, Skoda, Tata Motors, and Mahindra.