Chennai, Aug 4 (NationPress) The Vietnamese Electric Vehicle (EV) leader VinFast has officially opened its assembly plant in Thoothukudi, Tamil Nadu, marking the beginning of a significant investment journey worth up to Rs 16,000 crore.

Initially, this facility is designed to assemble 50,000 SUVs of its two premium electric models — the VF 6 and VF 7, with plans to scale up to 150,000 units per year to meet increasing demand. The company envisions developing Thoothukudi into an export hub.

VinFast believes that the new plant, supported by Tamil Nadu’s strong infrastructure, skilled workforce, and port facilities, will be pivotal in establishing a car export center for regions including South Asia, the Middle East, and Africa.

According to state Industries Minister T.R.B. Raaja, “This initiative will create a whole new industrial ecosystem in southern Tamil Nadu,” highlighting its importance in India’s manufacturing goals.

In addition, VinFast has commenced a $200 million assembly plant project in Indonesia and is expanding its reach into Thailand and the Philippines.

The company achieved sales of nearly 97,000 vehicles in 2024, a threefold increase compared to the previous year, primarily serving the domestic market in Vietnam.

On July 27, VinFast inaugurated its first showroom in India located in Surat, Gujarat. The showroom will feature the company’s electric SUV versions VF 6 and VF 7, which are being launched as right-hand drive for the first time. By year-end, VinFast aims to establish 35 dealerships across 27 cities in India.

VinFast is entering India’s rapidly growing EV market, which is currently dominated by local players like Tata Motors and Mahindra in the budget segment and Hyundai and MG Motor in the premium range.

In 2024, India sold over six million EVs, but four-wheel passenger vehicles accounted for only 2.5 percent of that figure.

The Vietnamese EV manufacturer has partnered with RoadGrid, myTVS, and Global Assure to offer charging and after-sales services throughout India. Furthermore, it has collaborated with BatX Energies to promote battery recycling and create a circular battery value chain, reinforcing its dedication to sustainable practices.

Earlier this month, Tesla, led by Elon Musk, launched its Model Y in India, starting at Rs 59.89 lakh, with its first showroom in Mumbai. Tesla will import the Model Y as a completely built unit (CBU) from its Shanghai manufacturing facility in China.