VinFast plans to open India plant by June 25, 2025

Vietnamese electric vehicle (EV) maker VinFast is set to open its new car assembly plant in Thoothukudi, Tamil Nadu, by the end of June. 

The company initially targeted the US market for foreign sales, but faced challenges in the market even before the President Donald Trump-induced tariff uncertainty struck. As a result, VinFast’s founder Pham Nhat Vuong now views better potential in India, Indonesia, and the Philippines than the US, Canada and the EU. 

VinFast reached an agreement with Tamil Nadu state last year , targeting an investment of up to $2 billion. The initial facility expected to  produce 150,000 units per year, with support from a supplier park that is now being developed. 

“In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines markets,” Pham Nhat Vuong told shareholders of VinFast’s parent company Vingroup.

“At the moment, VinFast is not planning to boost sales in US, Canada, and the European Union due to high logistics fee,” he added. Last year, VinFast and the southern state of Tamil Nadu agreed to work towards an investment of up to $2 billion, with an intended commitment of $500 million for the first five years of the project, with the plant expected to have an annual production capacity of up to 150,000 vehicles.

India is the world’s third-largest automobile market and one of the fastest-growing global economies, it is a strategic plan designed to cater to both the domestic Indian market as well as made-in-India EV exports to South Asian, Middle Eastern and African markets. 

Moreover, given the strength of the Indian automotive component manufacturing ecosystem, the India project is also a key part of VinFast’s overall goal to strengthen its supply chain for global expansion.