Vietnamese electric vehicle (EV) producer VinFast Auto is actively assessing potential locations for its upcoming manufacturing facility in India. Sources reveal that VinFast has reviewed two sites in Tamil Nadu, specifically in the Manalur region north of Chennai and one of the state’s southernmost districts, Tuticorin. Additionally, VinFast plans to evaluate plots in Gujarat shortly.
The choice of Tamil Nadu and Gujarat stems from the necessity for a port, making these states advantageous for VinFast. Tamil Nadu, with its strategic East-West connectivity, is particularly appealing to the company.
VinFast announced its intent to establish a manufacturing facility in India earlier this month, planning to invest approximately USD 200 million. The company aims to commence vehicle assembly operations by 2026 in a market it describes as having “tremendous potential.”
VinFast had temporarily become the world’s third-most valuable carmaker in August following its Nasdaq listing.
Queries sent to VinFast remained unanswered as of press time.
In an earnings call with analysts, VinFast identified India as a market with significant potential for EV adoption. The company, alongside its plans for an Indonesian facility, intends to commence production in India by 2026. Each facility is designed for an initial capacity of up to 50,000 cars per year, with an estimated investment of USD 150-200 million.
VinFast plans to build completely knocked-down (CKD) facilities in both Indonesia and India, aiming to tap into government incentives for local manufacturing, benefits like tariff exemptions, and access to cost-effective raw materials.
Founded in 2017, VinFast Auto has ambitious expansion plans and is the EV arm of Vingroup, Vietnam’s largest private corporation. Although smaller than Tesla, the company is rapidly growing and has set its sights on challenging Tesla’s dominance in the US market, where Tesla holds over a 50% market share.
As of now, VinFast operates a manufacturing facility in Hai Phong, Vietnam, and has initiated the construction of its first American factory in North Carolina. The company expects the North Carolina plant’s annual production capacity to reach 150,000 vehicles in its initial phase.
