The 400-acre facility marks a milestone in Tamil Nadu’s all-electric ambitions, with plans to roll out premium SUVs and create 3,500 direct jobs.
Gurugram, Haryana, August 18, 2025: Vietnam’s leading electric vehicle manufacturer, VinFast, has inaugurated its $500 million EV assembly plant in Thoothukudi, Tamil Nadu, marking a pivotal step in the state’s blueprint to develop its fourth automotive cluster. Spread across 400 acres in the SIPCOT industrial park, the plant has an initial capacity of 50,000 vehicles per year and positions Thoothukudi as the hub of Tamil Nadu’s first all-electric auto cluster.
Founded in 2017 as part of Vietnam’s Vingroup conglomerate, VinFast has rapidly emerged as the country’s best-selling car brand and is now expanding into India’s fast-growing EV market. After evaluating 15 sites across six states, Tamil Nadu was selected for its port connectivity, strong infrastructure, skilled workforce, and government-led EV vision.
The Thoothukudi plant integrates welding, painting, and assembly under one roof. Its first vehicles—the premium VF 6 and VF 7, tailored for Indian buyers—are expected to roll out later this year. Alongside manufacturing, VinFast is building a comprehensive EV ecosystem, partnering with RoadGrid and myTVS for service networks, BatX Energies for battery recycling, and 13 dealer groups to establish 35 dealerships across 27 cities.
“VinFast is committed to making EVs more accessible while contributing to economic growth through investment and local job creation,” a company spokesperson said.
Tamil Nadu’s EV Push
VinFast’s entry aligns with Tamil Nadu’s plan to expand industrial growth into its southern districts. The state has attracted INR 7.51 trillion in investments over the past four years, with nearly a third directed to the south. Thoothukudi, with its port access and skilled workforce, is being developed as the state’s first all-electric vehicle cluster, joining Chennai, Hosur, and Coimbatore as major hubs.
Common facilities for motors, power electronics, and batteries are in development, along with a proposed testing center. The EV Taskforce is coordinating with industry stakeholders to build a complete supply chain ecosystem.
Workforce readiness is another pillar of the plan. Under the Naan Mudhalvan program, hundreds of students have undergone training, with VinFast already employing around 200 graduates. The plant is expected to generate 3,000–3,500 direct jobs, with wider economic impact estimated at four to 11 additional jobs for every factory role.
Economic Ripple Effect
Beyond the factory gates, VinFast’s investment is set to stimulate transport, logistics, component suppliers, and local businesses. Once famed for pearls and port trade, Thoothukudi is now emerging as a hub for battery-powered vehicles bound for India and global markets.
About VinFast:
VinFast, a subsidiary of Vingroup, is Vietnam’s leading electric vehicle manufacturer. Founded in 2017, the company has quickly scaled to become the nation’s top-selling car brand, with an expanding global presence across North America, Europe, and Asia. With a mission to drive the global shift to sustainable mobility, VinFast develops premium EVs, batteries, and green technologies to make electric mobility accessible to all.
