Vietnam automaker VinFast rolls out first EV car from India factory in Thoothukudi

Vietnamese electric vehicle manufacturer VinFast on Monday rolled out the first electric car from its greenfield factory in the port city of Thoothukudi for the domestic and export markets, within 18 months of breaking ground in February 2024. 

The inauguration not only cements Tamil Nadu’s position as India’s automobile manufacturing hub but also marks a new chapter for Thoothukudi, which witnessed the closure of Sterlite Copper eight years ago due to protests by locals.

Chief Minister M K Stalin oversaw the first car coming off the production line at VinFast’s facility inside the SIPCOT industrial estate in Sillaanaththam and signed the car. 

VinFast’s production of electric cars comes weeks after global electric vehicle major Tesla entered the Indian market by launching its first store in Mumbai. The Vietnamese company has opened two showrooms in Vadodara, Gujarat, and Chennai.

Two models in the premium segment -- VF 6 and VF 7, which premiered at the Auto Expo 2025 in New Delhi -- will be produced at the new plant. The company has invested Rs 1,600 crore in the first phase to build the production unit with the capacity to produce 50,000 cars annually. VinFast has pledged to invest Rs 16,000 crore in total for a capacity of 1.5 lakh cars.

Stalin, flanked by Pham Sanh Chau, CEO of VinFast Asia, declared that Tamil Nadu was the EV capital of India, as over 40 percent of the electric cars, scooters, and three-wheelers in the country are manufactured in the state.

“We have ensured that the first car is rolled out in just 18 months after signing a Memorandum of Understanding. The factory will unleash industrial growth across southern Tamil Nadu. This is what Ease of Doing Business means,” Stalin said as he oversaw the signing of MoUs worth Rs 32,554 crore that will provide jobs to 49,845 persons.

Some key proposals include RGE pledging to invest Rs 4,953 crore in a manmade fibre plant, Kaynes Circuits to manufacture PCB, HDI, and flexible PCBs at a cost of Rs 4,995 crore, and Yeemak to produce multilayer PCBs and radar systems by investing Rs 3,400 crore.

Tamil Nadu is already home to automobile majors like Hyundai, Renault-Nissan, BMW, and electric scooter makers such as Ola, Ather, Ampere, and TVS Motors. Tata Motors-Jaguar Land Rover is building a massive passenger vehicle manufacturing unit in Panapakkam in Ranipet district.

VinFast’s launch of production in Thoothukudi is a major boost for the city, which was hit by massive protests in 2018 against the expansion of Sterlite Copper, leading to its closure on charges of pollution.

VinFast, which has the third-highest EV market capitalization in the world, will compete with Tesla and BYD in India, alongside traditional players like Tata, Mahindra, and Hyundai, who have introduced EV variants.

The VF 6 and VF 7, likely priced under Rs 25 lakh, will compete with Tesla’s Model Y, which is sold at a premium of Rs 60 lakh. The cars made in Thoothukudi are likely to be exported to other markets from the port, which was one of the reasons why VinFast chose the city for its first India facility.

Prakalathan Tirupathy, Project Director, VinFast Thoothukudi, said the company will start producing more models from the greenfield factory based on demand. 

“The focus has been to recruit people from in and around Thoothukudi and we have been successful. We have recruited over 200 polytechnic students for various jobs in the factory,” he added.

The company, which is part of Vietnam’s biggest conglomerate Vingroup, is also establishing a suppliers’ park in Thoothukudi close to its car plant.

“We hope an excellent ecosystem will be created in the area in the next few years,” a source familiar with the project added.