Vietnamese electric vehicle (EV) maker VinFast Auto Ltd. has officially opened a $500 million factory in Tamil Nadu, India. This new facility is part of the company’s global expansion plans and marks a key step to enter markets in South Asia, the Middle East, and Africa.
Initial and Future Capacity
The Tamil Nadu plant will initially produce 50,000 electric vehicles annually. VinFast plans to increase this capacity to 150,000 vehicles per year in the future, according to Asia CEO Pham Sanh Chau.
Models and Global Orders
The factory will manufacture VinFast’s premium electric SUV models, VF 7 and VF 6. The company has already received orders from several countries in its target regions and has signed early financing agreements with major banks. VinFast is also in talks with private equity firms and seeking up to $200 million in loans from Indian state-owned banks.
Partnerships and Dealership Plans in India
VinFast is exploring joint ventures with Indian companies and has opened its first showroom in Surat in July. The company aims to launch 35 dealerships across 27 cities in India by the end of the year.
Shift in Global Strategy
VinFast founder Pham Nhat Vuong is focusing on India, Indonesia, the Philippines, and Vietnam instead of North America and Europe. This decision is due to the high logistics costs in those Western markets.
Global Operations and Growth Target
In 2024, VinFast delivered 97,399 electric vehicles globally. The company expects to double this number to 200,000 deliveries in 2025, mainly led by growth in Vietnam and its new markets.
This new Tamil Nadu plant is VinFast’s third manufacturing facility after its two existing plants in Vietnam. A new factory in Indonesia is also scheduled to open by October 2025.
VinFast’s India Push: New Plant, Supplier Shift, and Export Plans
The company’s Asia CEO revealed that current suppliers are considering shifting production to India’s industrial park, with one Vietnamese manufacturer exploring moving plastic production to support car manufacturing. VinFast plans to launch cars in Indian showrooms later this month, though pricing and exact dates remain undisclosed. The facility, backed by a potential $2 billion investment agreement with Tamil Nadu state, has 150,000 vehicles annual production capacity. The plant has received initial export orders from Sri Lanka, Nepal, and Mauritius, positioning it as a potential export hub while focusing primarily on Indian market demand. VinFast targets 200,000 global car deliveries for 2025, having sold approximately 72,100 units in the first half of the year, mainly in Vietnam.
Conclusion
With strong backing, local partnerships, and a clear focus on emerging markets, VinFast is positioning itself as a major EV player outside the traditional Western markets. The Tamil Nadu facility is expected to be a key driver in this global growth strategy.
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