Vinfast to Begin India Operations With Tamil Nadu Factory In 3 Months
Vinfast is getting ready to start its India operations. The Vietnamese carmaker showcased a range of its global products at the Bharat Mobility Expo 2025. According to the latest reports, Vinfast could start its India operations in the next three months. The production will soon begin at the company's new plant which is being completed at Thoothukudi, Tamil Nadu. The VF3, which was previously showcased at the Expo will be one of the early models to launch here.
With the new factory becoming operational, Tamil Nadu will get its fourth automotive hub. Thoothukudi will emerge as a key player in the Indian automotive manufacturing sector. Sources say that the plans are nearing completion, with 90% of the work already completed. The company is also scouting for local suppliers. Local sourcing will help reduce manufacturing costs and help in pricing these vehicles competitively.
The Thoothukudi plant will have an annual production capacity of 50,000 units initially. Later, this will be expanded to 1.5 lakh units per annum. It will produce both Right Hand Drive (RHD) and Left Hand Drive (LHD) models. Models like the VF3, VF5, and e34 are expected to be manufactured here.
“Thoothukudi is now emerging as the state’s fourth major auto cluster after Chennai, Krishnagiri, and Coimbatore, further strengthening our position in the sector,” said Industries Minister TRB Rajaa.
Vinfast will be bringing in electric vehicles. The senior officials recently held discussions about the import of crucial electric vehicle (EV) components. These discussions also covered plans to establish shipping logistics and liner connectivity with the Vietnam port- Hai Phong. The manufacturer will use the port to import essential EV parts from and export finished vehicles.
Insiders reportedly said that the company would bring in 2,000 TEUs (twenty-foot equivalent units) of components initially. The production is expected to kick-start by May. The official inauguration could commence in June. Before shifting its focus to exports, Vinfast will try to establish a strong presence in the domestic market.
It will launch more models following the VF3. In a previous interview with Autocar Professional, Pham Sanh Chau, MD and CEO of VinFast Asia said that the company would launch its products in India by the second half of 2025 and that the construction of the Tamil Nadu facility is in full swing.
Pham Sanh Chau also remarked that the VF7 electric SUV will be the first to reach our shores. This could be followed by models like the VF6 and VF3. The plan here seems to be to bring the highest model in the mid-premium space first and showcase the brand's capabilities to customers belonging to the creamy middle class.
“Phase I alone will produce 1,50,000 units annually, supported by a supplier park under development. With its superior seaport connectivity, Thoothukudi promises faster exports and greater efficiency. The project is also expected to generate 3,500 new jobs,” Guidance, Tamil Nadu's investment promotion agency, remarked in a social media post.
With an operational Vinfast plant, Tamil Nadu will achieve strong leadership in automotive manufacturing, as it already has auto factory clusters running in Chennai, Krishnagiri and Coimbatore. The South Indian state also has a robust auto component ecosystem. It comprises 400 manufacturers and major tyre producers. This helps automotive manufacturers attain 70-80% localisation.
Tamil Nadu has identified Coimbatore, Tiruchi, Madurai, Salem, and Chennai as potential EV hubs. Factors like the availability of a highly competent and trained workforce, an excellent network of suppliers, a hospitable auto and component manufacturing ecosystem, and Tamil Nadu's excellent infrastructure and logistic systems make it easy for auto manufacturers to set up factories here and flourish. Thoothukudi further stands special in offering strategic port connectivity.