Vietnamese electric vehicle manufacturer VinFast is set to commence operations at its new Tamil Nadu facility within the next three to four months, according to Dr. TRB Rajaa, the state's Minister for Industries, Investment Promotions, and Commerce.

The company began construction of its third global production plant in Thoothukudi in February 2024. The 400-acre integrated facility expands upon VinFast's existing manufacturing operations in Vietnam and the United States.

"They are going to open in just three or four months," Dr. Rajaa stated on 27th March, 2025 at the Future Powertrain Conclave, an event organised by a local automotive publication and the Government of Tamil Nadu.

Production plans and market strategy

The plant will initially begin with completely knocked-down (CKD) operations and a production capacity of 50,000 units per annum, eventually scaling up to 150,000 units.

VinFast also plans to expand its product portfolio from premium to mass-market segments.

The automaker is expected to introduce locally assembled mid-size electric SUVs, the VF 7 and VF 6, from the facility for the Indian market ahead of the festival season.

These SUVs will be positioned in the same segment as the Mahindra BE 6, XEV 7E, Hyundai Creta EV, Tata Curvv, and Harrier EV. The pricing is expected to range between Rs. 2 million and Rs. 3 million (US$ 23,305 - 34,960).

While the primary focus of the Tamil Nadu facility will be to cater to the domestic market, it will eventually also serve demand in the Middle East and Africa.

Replicating the Southeast Asian strategy

In India, VinFast intends to follow its Southeast Asian market strategy, beginning with vehicle production before establishing a comprehensive value chain.

This will include charging infrastructure, financing, and leasing services, further solidifying its presence in the Indian electric vehicle market.