Tag - electric vehicle manufacturing India

Key Highlights VinFast to open its first Indian assembly plant in Thoothukudi, Tamil Nadu, by June 2025. The facility will have an annual production capacity of 150,000 vehicles. The company shifts focus from the U.S. market to Asia, prioritizing India, Indonesia, and the Philippines. Vietnamese electric vehicle (EV) manufacturer VinFast is set to establish its first assembly plant in India, with operations expected to begin by June 2025. The facility, located in Thoothukudi, Tamil Nadu, marks a strategic shift for the company as it moves away from the U.S. market and focuses on Asia. VinFast is shifting market focus VinFast had initially planned to expand aggressively in North America, but high logistics costs and tariff uncertainties forced the company to reconsider its approach. Instead, it is now prioritizing India, Indonesia, and the Philippines, where demand for EVs is growing rapidly. The Thoothukudi plant will have an annual production capacity of 150,000 vehicles, making it a key hub for VinFast’s expansion in the region. The company has committed $500 million for the first five years, with a total investment of $2 billion planned for the facility. What to expect from VinFast in India? VinFast’s entry into India is expected to bring premium EVs to the market, including models like the VF 6 and VF 7. The company has already trademarked the VF 3, a compact electric vehicle, and the VF e34, which has been spotted undergoing testing in Pune. The India-Thailand Free Trade Agreement (FTA) could also play a role in VinFast’s pricing strategy. With reduced import duties on components sourced from Thailand, the company may be able to price its EVs competitively against rivals like Tata, Hyundai, and MG. The Thoothukudi plant could be a game-changer, bringing fresh competition to the segment. Here’s hoping VinFast delivers on its promises and makes electric mobility more accessible in India! Also read: Volkswagen unveils three new EV concepts at Shanghai Motor Show