VinFast, the Vietnamese electric vehicle manufacturer is set to begin operations in India as its new plant in Thoothukudi nears completion. According to industry sources, 90 percent of the plant construction is complete and production is expected to start within the next two to three months. This development positions Thoothukudi as Tamil Nadu’s fourth major automotive cluster joining established hubs in Chennai, Krishnagiri and Coimbatore. State officials have confirmed the progress during recent discussions on plant logistics.
The facility located in Thoothukudi is designed to support an initial production capacity of 50000 units annually with plans to scale up to 150000 units in Phase I. VinFast will produce both right-hand drive and left-hand drive models with early production expected to include models such as the VF3 and VF7 electric vehicles. Senior officials have noted that the plant will import approximately 2000 TEUs of EV components with shipping logistics linked to Vietnam’s Port of Hai Phong.
Tamil Nadu’s robust auto manufacturing ecosystem underpins this new venture. The state is known for its extensive network of over 400 auto component manufacturers and major tyre producers, which achieve 70 to 80 percent localisation of vehicle parts. This reliable supply chain along with a competent workforce and efficient logistics supports the growth of new auto clusters and EV production facilities across the state.
The new plant is expected to generate around 3500 jobs, contributing to local economic growth and reinforcing the state’s leadership in automotive manufacturing. Initially focusing on the domestic market, VinFast plans to expand its reach to international markets once operations stabilize. This development marks an important milestone in the evolution of India’s electric vehicle industry, further enhancing Tamil Nadu’s strategic position in the sector.
