In a historic move towards sustainable and green mobility, VinFast Auto, Vietnam's premier electric vehicle (EV) manufacturer, laid the foundation stone for its inaugural manufacturing facility in India.
Spread across 400 acres in the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate in Thoothukudi, southern Tamil Nadu, the new integrated EV plant is part of VinFast's initial $500 million investment in the project. This substantial commitment is set to unfold over the next five years, with the manufacturing facility projected to produce approximately 150,000 electric vehicles annually. The initiative is poised to play a pivotal role in economic growth of Tamil Nadu providing employment opportunities for a 3,000 to 3,500-strong workforce and contributing to the technical skill development of the local population.
The Beginning
It may be recalled that the partnership between VinFast and the Government of Tamil Nadu began with the signing of a Memorandum of Understanding (MoU) on January 6, 2024. The company expects to have the India factory up and running by 2026.
The groundbreaking ceremony was attended by several dignitaries including M K Stalin, Chief Minister of Tamil Nadu, and Dr T R B Rajaa, Minister for Industries. The event marked a significant leap in VinFast's global expansion strategy and showcased its dedication to driving the shift towards environmentally friendly transportation on a local and global scale.
Pham Sanh Chau, CEO, VinFast India, stated, 'VinFast's groundbreaking ceremony for its plant in Thoothukudi, Tamil Nadu marks a significant step towards sustainable and green mobility in India.' He emphasised the company's dedication to job creation, green transportation, and strategic partnerships, solidifying its position as a major player in the EV industry.
Rajaa said, 'We believe the project will substantially contribute to the local economic advancement, job creation, and technical skill development of the people of Tamil Nadu.'
VinFast's venture into India aligns with its strategic global expansion plan, capitaliasing on the rapidly growing EV segment in the world's third-largest vehicle market by volume. The company aims not only to maximise localisation and collaborate with a global supplier base but also to establish a nationwide dealership network, ensuring a strong brand presence and direct engagement with customers across the country.
This ceremony not only strengthens the comprehensive strategic partnership between Vietnam and India but also exemplifies VinFast's global aspirations, using India as a springboard for international market expansion. The OEM aims to provide the Indian market with premium quality EVs, competitive pricing, and after-sales services, positioning itself as the preferred electric vehicle brand in the country. The State Government targets 30% of newly registered private cars to be electric, aligning with efforts to reduce carbon emissions in the transportation sector.
Relentless Innovation
Matching its mission “Relentless Innovation: To Offer The Best Intelligent Mobility Experience,” VinFast, in 2017, marked a pivotal moment with the establishment of its automotive manufacturing complex. The following year, the Lux models were officially unveiled at the Paris Motor Show.
The year 2019 witnessed VinFast's official entry into the Vietnamese market with the launches of three models - Lux SA2.0, Lux A2.0, and Fadil. Simultaneously, the company introduced three e-scooters (Ludo, Impes, Klara).
Entering the acceleration phase in 2020, the vehicle maker achieved remarkable success, becoming the best-seller in all three automotive segments in Vietnam. The momentum continued in 2021 with the launch of three new smart EVs (VF e34, VF 8, VF 9), two e-scooters (Theon & Feliz), and an E-Bus. This phase also saw the introduction of a unique AR/VR experience and pre-orders for VF 8 and VF 9 in key markets.
Moving into the Go Global phase in 2022, the OEM initiated global pre-orders and deliveries of VF 8 and VF 9. The company also unveiled its global showrooms in key markets, signaling its readiness for international expansion.
The Global Expansion phase in 2023 saw its commitment to growth with the launch of VF 5, VF 6, and VF 9. In July 2023, the company broke ground on its North Carolina Plant, further expanding its manufacturing capabilities. By August 2023, VinFast achieved another milestone by being listed on the Nasdaq under the ticker 'VFS,' solidifying its presence on the global stage.
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