Vinfast plant at Thoothukudi.
Credit: X/@TuticorinUpdates
Chennai: VinFast India is likely to roll out its first electric car for the Indian market from its greenfield factory in the port city of Thoothukudi on June 30, marking a significant milestone for the Vietnamese electric vehicle maker, which has built the facility in a record 15 months.
Initially, the cars produced at the Thoothukudi facility located inside the SIPCOT industrial park in Sillaanaththam will cater to the domestic Indian market, with plans to expand exports globally in the future. Thoothukudi Port was one of the reasons why VinFast chose the city for its first India facility.
The company, which signed a Memorandum of Understanding (MoU) with the Tamil Nadu government on January 7, broke the ground for constructing the factory in under two months on February 25, 2024. The first car roll-out within 15 months of the ground breaking ceremony is a shot in the arm for the Tamil Nadu government, which faced intense criticism over the investment with many commenting that the project may never see the light of the day.
VinFast has the third highest EV market capitalisation after Tesla and Toyota, despite its foray into the US not being as smooth as expected. The Thoothukudi plant is an integrated electric vehicle factory with a capacity to produce 1.5 lakh cars per annum. The company didn’t comment on the development.
The company, which is part of Vietnam’s biggest conglomerate Vingroup, competes with US’ Tesla and China’s BYD, which assembles vehicles at a facility in Kanchipuram near Chennai, among other EV makers. The company has lined up an investment up to $2 billion (Rs 16,000 crore) to set up an integrated manufacturing facility to produce electric cars and batteries.
“VinFast is also coming up with a suppliers’ park in Thoothukudi close to its car plant. We hope an excellent ecosystem gets created in the area in the next few years,” the source added.
Tamil Nadu has already emerged as the EV hub of India, accounting for over 40% of total planned investments in the EV sector, including two-wheelers.
Thoothukudi was proposed to VinFast as part of the state government’s efforts to decongest Chennai, known as India’s Detroit, and distribute projects across Tamil Nadu. Tata Motors-Jaguar Land Rover is also building a massive factory in Ranipet district to manufacture cars of both companies, including EVs.
Vinfast’s likely inauguration also comes close on the heels of the Tamil Nadu government announcing the launch of an exclusive Vietnam desk of Guidance, its investment promotion agency.