Vietnam-based electric vehicle manufacturer VinFast is set to start operations at its first Indian facility by June 2025. The plant, located in Thoothukudi, Tamil Nadu, marks a significant strategic shift for the company as it pivots focus towards Asia. VinFast’s CEO, Pham Nhat Vuong, confirmed that the facility will be operational by mid-2025, with a production capacity of up to 1,50,000 vehicles annually. A groundbreaking ceremony was held in February 2024. The company has committed an investment of USD 2 billion, with USD 500 million allocated for the initial five years.

Shift in Global Strategy Amid US Slowdown

Initially, VinFast targeted North America for its global expansion. However, slower-than-expected progress in the United States, along with rising logistical costs and trade uncertainties, prompted the EV maker to delay its US plans. The development of its USD 4 billion North Carolina facility has now been postponed to 2028. For now, the company is not planning any major push in the US, Canada, or European Union.

In response, VinFast is accelerating its entry into promising Asian markets, including India, Indonesia, and the Philippines. The company believes these regions offer better growth potential in the current scenario.

Indonesia Plant to Open by October 2025

VinFast is also setting up a manufacturing plant in Indonesia, which is scheduled to begin operations in October 2025. The factory will have a higher production capacity of up to 2,00,000 units annually. This move is part of the company’s broader strategy to strengthen its footprint across key Asian markets.

What’s Coming to India from VinFast?

VinFast plans to debut in India with premium electric SUVs like the VF 6 and VF 7. The VF 7 has already been spotted in Pune on flatbed trucks, hinting at ongoing homologation processes, possibly at ARAI. The VF e34 has also been tested on Indian roads, and smaller EVs like the VF 3 have been trademarked, suggesting future launches.

The Indian market will play a crucial role in VinFast’s global roadmap as it looks to build a strong customer base in Asia. With local production and a diversified EV lineup, VinFast aims to become a competitive player in India’s growing electric vehicle segment.