VinFast India Factory: Tamil Nadu will become Asia’s EV Powerhouse
The craze for electric vehicles is growing all over the world today, and now a new name has joined this race – Vietnam’s EV company VinFast. This company has now officially set foot in India with its global ambitions. And it all started from Thoothukudi city of Tamil Nadu, where VinFast’s first manufacturing factory (VinFast India Factory) outside Vietnam was inaugurated. This new EV plant was launched by Chief Minister M.K. Stalin, and it is not just a factory but is going to become the identity of new industrial development.
VinFast India Factory in Thoothukudi: A New Udaan
VinFast has set up its factory on a 400-acre land in SIPCOT Industrial Park in Tamil Nadu. From ground breaking to rolling out the first EV car in just 18 months is a record. This milestone has not only given Tamil Nadu the status of “EV capital of India” but has also brought new jobs and new dreams for places like Thoothukudi. This was the city where there were huge protests against Sterlite Copper in 2018, after which the plant was closed. Today, the same place has come alive in an industrial form once again – this time for a green and clean future.
First Car Rollout in the Presence of Chief Minister Stalin
When the factory’s first EV car rolled off the production line, the Chief Minister also signed it, a symbolic gesture that held hope for development and progress. This new factory will not only work for the domestic market but also for export, and for this VinFast chose a port city like Thoothukudi. With a strategic location, it will be easy to reach global markets from here.
VinFast matches shoulder to shoulder with Tesla

This launch of VinFast has come at a time when Tesla has also set up its store in India – they have opened their first store in Mumbai. But VinFast is no less. The company has opened its showrooms in Vadodara, Gujarat and Chennai, Tamil Nadu. And the two premium models VF 6 and VF 7 that were unveiled at Auto Expo 2025 are now being manufactured in this new Indian plant.
Investment of Rs 16,000 Crore and Production Capacity
VinFast has invested Rs 1,600 crore in the first phase, which has created a production capacity of up to 50,000 cars annually. But their long-term goal is to invest Rs 16,000 crore and have a production capacity of 1.5 lakh cars. These numbers are not just numbers, but a source of new jobs, new dreams, and new opportunities.
Tamil Nadu: India’s EV Hub
CM Stalin proudly declared that Tamil Nadu is the hub of EV manufacturing. Today 40% of the country’s electric vehicles are made in this state. Big names like Ola, Ather, Ampere, TVS Motors, Tata Motors-Jaguar Land Rover are part of its ecosystem. Now with the arrival of VinFast, this ecosystem will be strengthened.
MoUs worth Rs 32,554 crore and employment opportunities
The government has signed MoUs worth Rs 32,554 crore to promote “Ease of Doing Business”, which will provide employment to 49,845 people. This is a big economic boost, especially for regions like South Tamil Nadu. Companies like RGE, Kaynes Circuits, and Yeemak are also gaining a foothold in Tamil Nadu – with high-tech industries like new fiber plants, PCB manufacturing units, and radar system production.
Focus on Supplier Park and Local Hiring in Thoothukudi
The vision of VinFast is not just to make cars but to create an ecosystem. Hence, the company is also setting up a supplier park in Thoothukudi where local vendors and suppliers will get a chance to become part of the global supply chain. VinFast Project Director Prakalathan Tirupathy said that they have recruited a lot of local youth – more than 200 polytechnic students have got training and job opportunities.
VinFast India Factory will compete with Tesla, Tata, Mahindra

If we talk about competition, then VinFast will now compete with established players like Tesla, BYD, Tata, Mahindra and Hyundai in the Indian EV market. But their approach is unique – pricing models like VF 6 and VF 7 with premium features under ₹25 lakh, whereas Tesla’s Model Y costs above ₹60 lakh. With this pricing strategy, VinFast will target both mass market and aspirational buyers.
Thoothukudi’s new identity: From pollution to progress
This VinFast India Factory is the beginning of a new journey for Thoothukudi. Where there was a history of pollution and protests, now the future of sustainability and innovation is being written there. VinFast’s entry is going to give new momentum to the EV revolution in India. And Tamil Nadu has become the epicentre of this revolution.
Disclaimer:
This article has been written for an informative purpose, whose aim is to provide correct, simple and updated information to the readers about current industrial developments and VinFast’s India entry. This content has been written as per all SEO guidelines of Google Search Engine.
Also Read
Honda CB125 Hornet & Shine 100 DX Launched: Price, Features & Booking