India’s EV space is getting louder every month, and now there’s a new brand stepping in with a lot of confidence – VinFast. The Vietnamese company, which has grown incredibly fast in just a few years, has picked India as its next major market. And instead of taking it slow, they’ve started with a huge new factory in Tamil Nadu.
The facility is situated in the Sipcot Industrial Estate in Thoothukudi and is spread over an area of over 400 acres. That alone sets the tone — VinFast wants to build big volumes, not just test the waters. The location provides them access to a deep-sea port for exports and an industrial belt with a plethora of suppliers and skilled workers.
Here’s the basic breakdown of what this new factory means:
- Phase 1 investment is around Rs 4,300 crore with plans to expand up to Rs 16,000 crore.
- Initial capacity is about 50,000 vehicles a year but the plant can be expanded to 1.5 lakh units.
- The factory has automated body and paint shops, sophisticated assembly lines, and clean and efficient workspaces.
- VinFast had it built in roughly 17 months, which is fast for a project of this scale.
The local impact is big too. VinFast expects to create 3,000-3,500 direct jobs, and many more through its suppliers. Over time, they hope to achieve 70% localisation, meaning that most of the parts will come from within India. That helps reduce costs and increases the Indian EV supply chain.
What stands out is that VinFast isn’t just planning on assembling cars. They’re developing a whole EV ecosystem. The brand is establishing dealerships, service centres and fast chargers with an aim of having 35 dealerships and more than 200 service points by 2025. They’re also working through W Green Solutions to install charging stations throughout major cities and highways.
The first models to be expected from the new factory are the VF6 and VF7 electric SUVs. The VF7, in particular, appears to be designed for Indian buyers – sharp design, practical cabin, certified range of about 530 km and a dual-motor configuration with up to 350 hp. It’s quick but still simple and modern looking on the inside.
VinFast’s India entry may take some time to get fully settled due to the competitive nature of the market and still-growing infrastructure. But the scale, ambition and speed of their plan makes them a player worth watching. If all goes in the right direction, India could become one of VinFast’s largest production and export bases.
In short: a huge factory, good investment, new jobs and a clear EV vision. VinFast isn’t here for a small start — they’re here to stay.