Vietnam’s VinFast to set up global EV manufacturing hub in Tamil Nadu

VinFast Auto will initially be importing its e-SUVs as Completely Built Units in the first phase. (Image: VinFast Auto)

Vietnam-based electric vehicle (EV) company VinFast Auto, which is gearing up to enter the Indian market in the second half of this year, will be establishing its vehicle manufacturing facility at a 400-acre site at  Thoothukudi, Tamil Nadu, sources told Moneycontrol. They also informed that India will be a global manufacturing hub for the automaker.

"The top management of VinFast, including Chairman Phạm Nhật Vượng, is expected to  come  to India soon. An MOU (memorandum of understanding) will be signed between the Vietnamese carmaker and Tamil Nadu government, to set up a mega manufacturing plant which will house a battery-making unit as well as a vehicle-manufacturing assembly line,” sources privy to the development told Moneycontrol, requesting anonymity.

Another source revealed that the facility will entail an investment of $2 billion, and will have a capacity of 1.5 lakh units per annum. However, the utilisation levels will be less than one-third in the first phase of manufacturing operations, as per the source.

A query emailed to the VinFast spokesperson could not elicit any response. Questions sent to Tamil Nadu  Industry Minister TRB Rajaa also remained unanswered till press time.

“VinFast sees this as one of their major manufacturing hubs. India fits their global strategy well due to its  growing domestic demand for EVs,  and it can also serve as an export hub for other neighbouring markets,” stated Puneet Gupta, Director, (India & ASEAN Automotive Sales Forecast), S&P Global Mobility.

Moneycontrol had earlier exclusively reported that VinFast Auto will initially be importing its electric sports utility vehicles (e-SUVs) as completely built units (CBUs),  and will import completely knocked down (CKD) kits of its cars that will be assembled in India and a year later.

While the carmaker has several models in the United States and home markets, it will initially be shipping in only the VF6, VF7, VF8, and VF9 eSUVs to India. An electric micro or mini-SUV, tailor-made for the Indian market, will also be launched eventually. All the e-SUVs, except the upcoming India-specific model, will be displayed at the 2025 Auto Expo, as reported by Moneycontrol.