VinFast, the Vietnamese electric vehicle (EV) manufacturer, is nearing completion of its new production facility in Thoothukudi, Tamil Nadu. The plant is set to play a crucial role in India’s growing EV sector and contribute significantly to the state’s automotive ecosystem.

Key Developments and Data

AspectDetails
Construction Status90% complete as of March 2025.
Production StartExpected within 2-3 months, around May 2025.
Plant InaugurationOfficial launch anticipated in June 2025.
Initial Market FocusDomestic market first, followed by global exports.
EV Component Imports2,000 TEUs of essential components to be imported from Vietnam’s Port of Hai Phong.
Annual Production Capacity150,000 vehicles in Phase I.
Job CreationEstimated 3,500 new jobs.
Strategic LocationThoothukudi is Tamil Nadu’s fourth major auto cluster, after Chennai, Krishnagiri, and Coimbatore.
Export AdvantageSeaport connectivity supports efficient global exports.
Automotive EcosystemTamil Nadu hosts over 400 auto component manufacturers with 70-80% localization of vehicle components.
Future EV HubsCoimbatore, Tiruchi, Madurai, Salem, and Chennai identified for further EV development.

Strategic Importance

The establishment of the VinFast plant in Tamil Nadu strengthens the state’s position as a leader in EV manufacturing. With a strong automotive supply chain and advanced logistics infrastructure, Tamil Nadu is set to benefit from increased investment, job creation, and export opportunities.

As VinFast gears up for production, the company’s strategic approach to localization and supply chain development is expected to bolster India’s EV sector while enhancing global trade relations with Vietnam.


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