VinFast, the Vietnamese electric carmaker, is set to start work on its first Indian manufacturing facility, sources have revealed.
The company will make batteries in Thoothukudi city in Tamil Nadu, a state in the country’s south, according to one source, who said the plant is separate from its previously announced plans to assemble vehicles shipped in parts from Vietnam.
VinFast, which competes with carmakers such as Tesla and China’s BYD, declined to comment. An announcement by the company on the new plant is expected in coming days, two people said.
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VinFast said in a statement on Wednesday that it would reveal details of its plans at “an appropriate time”.
A spokesperson for the Tamil Nadu government did not immediately respond to a request for comment.
“Several VinFast officials have visited Thoothukudi district in Tamil Nadu to check out sites,” a fourth source, a senior official directly involved in the matter, said on Tuesday.
In September it was reported that VinFast had begun hiring for sales, legal and back office jobs in India, seeking recruits who “dare to think, dare to do, and dare to face difficulties.”
It is not immediately clear what the size of the investment is or when a VinFast factory will become operational in Tamil Nadu.
Factories also planned in Indonesia
VinFast said in October it would build assembly factories in India and Indonesia, with each of them having a capacity of up to 50,000 cars per year and capital expenditure of up to $200 million initially. It added production will commence in 2026.
Separately, Green SM, EV taxi operator, mostly owned by VinFast’s founder, also plans to establish in India, the world’s third-largest automotive market, VinFast CEO Le Thi Thu Thuy told Reuters in October.
VinFast is also open to bringing both e-scooters and e-cars to India, the first source said.
Tamil Nadu’s capital city Chennai, dubbed the Detroit of Asia, and other districts already are host to several EV players including Indian two-wheeler makers Ola Electric and Ather as well as China’s BYD.
- Reuters with additional editing by Jim Pollard
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