Thoothukudi (Tamil Nadu), Aug 4 : Vietnamese Electric Vehicle major VinFast on Monday officially inaugurated its electric vehicle (EV) assembly plant at the SIPCOT Industrial Park in Thoothukudi.
Tamil Nadu Chief Minister M K Stalin inaugurated the plant in the presence of VinFast Asia, CEO Pham Sanh Chau, with the roll out of the premium VF7 car.
The milestone marks a major step in VinFast’s global expansion, reinforcing the company’s long-term commitment to the world’s third-largest automobile market and underscoring VinFast’s confidence in India’s strategic role in the future of the global EV industry, the company said.
The CM signed the first car from the factory. VinFast Tamil Nadu is the company’s third operational plant and the fifth project in its global manufacturing network.
Speaking on the occasion, Stalin expressed happiness over the largest groups in South Asia for choosing Tamil Nadu for its project. “Today the first electric vehicle manufacturing project has been started in Thoothukudi. This will improve trade and economic growth between Tamil Nadu and Vietnam,” he said and added that this was an example of ‘ease of doing business’ in Tamil Nadu.
The project was completed within eighteen months of signing of the Memorandum of Understanding, with an initial investment of Rs 1,300 crore. This was the first electric vehicle manufacturing facility the company has started in South Asia, outside of Vietnam.
Currently, leading companies like Hyundai, Nissan, Tata Motors, BMW, BYD, Ola, Ather, TVS, Ampere have started their electric vehicle production. Many more traditional car companies were also choosing the path of electric vehicles, he said.
More than 200 diploma students from Thoothukudi district, who received special training under the government skill development programme have got employment in this company. Further, the firm will hire 80 to 90 per cent of the employees from Thoothukudi and neighbouring districts. The Dravidian model government’s objective of complete local development with global investment has been fulfilled, he claimed.
With this project, various development opportunities, including spare parts manufacturing will increase in the districts surrounding Thoothukudi. He said 40 per cent of India’s total electric vehicle production was from Tamil Nadu.
With a total area of 400 acres, the plant is equipped with state-of-the-art production lines meeting world-class standards, featuring advanced automation and cutting-edge technologies. The complex houses multiple workshops, including body shop, paint shop, assembly shop, quality control center, and a logistics hub. It also includes an auxiliary cluster for local contractors, which is expected to expand in the coming years, the company said in a release.
At full capacity, the plant will create 3,000-3,500 direct jobs for local workers, along with thousands of indirect jobs in the supply chain ecosystem. This will help boost socio-economic development in Tamil Nadu, positioning the state as a manufacturing hub for India and a potential EV capital of South Asia in the near future.
In its initial phase, VinFast Tamil Nadu will focus on assembling two premium electric SUV models: the VF 7 and VF 6. The plant’s starting capacity is 50,000 vehicles per year, scalable up to 1,50,000 units annually to meet rising market demand.
With the launch of the Tamil Nadu plant, VinFast moves closer to its 2025 sales target of 2,00,000 vehicles and its long-term production goal of one million vehicles per year by 2030. This milestone reaffirms VinFast’s commitment to promoting sustainable mobility and advancing a greener future in India and worldwide, it said.
Speaking on the occasion, Pham Sanh Chau said, “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 facility will expand its production capacity to meet rising demand. It is aimed to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa.
“We’ve already secured initial orders from several countries across these regions. In close collaboration with the Tamil Nadu government, VinFast is working to transform the area into the ‘EV capital of South Asia’, supporting both the dynamic domestic market and our broader regional ambitions,” he said.
VinFast, a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates, is a pure-play electric vehicle manufacturer with the mission of making EVs accessible to everyone. VinFast’s product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. (PTI)
