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New Delhi: Vietnamese-based EV maker VinFast made their entry in India with a big investment-driven strategy, tapping into one of the fastest-growing electric vehicle markets. The Vietnamese EV maker broke ground on their first Indian manufacturing plant in Thoothukudi, Tamil Nadu, committing a heavy investment.
Along with this, their parent company, Vingroup, signed broader development agreements in states like Telangana, signalling a long-term vision that extends beyond just automobiles and more into renewable energy and smart mobility ecosystems. With the launch of its VF 6 and VF 7 SUVs, VinFast has positioned itself as a serious contender in India’s premium EV space.
In April 2024, VinFast, the company, announced a pledge of about Rs 4,000 crore for the Thoothukudi, Tamil Nadu factory. The facility was inaugurated this year with an initial capacity of 50,000 vehicles per annum, and it would be scaled up to 150,000 units.
In December 2025, VinFast announced another Rs 4,000 crore plus investment to expand the Tamil Nadu plant, an adjacent land of 200 hectares and add production lines for electric buses and e-scooters. All of this is a part of their Rs 16,000 crore investment programme.
Apart from this, Vingroup have signed an MoU with the government of the state of Telangana for a proposed Rs 24,000 crore investment across sectors, which is smart urban development, mobility, renewable energy, education, and tourism. Under the MoU, Vingroup plans to develop multiple infrastructure and mobility initiatives.
At present, the brand has launched only two premium EV SUVs, the VF6 and VF7. These models are being assembled in India at the Thoothukudi plant. Recently, the brand has indicated their intention to enter the electric buses and electric two-wheelers as well. There are also plans to launch an MPV named the “Limo Green”, in early 2026 and other models, VF3 and VF7, are also in the plans.
The market is important as it is the third biggest automotive market globally, and the EV segment is growing at a rapid pace. Having a local manufacturing base means VinFast to reduce import costs, avoid tariffs, shorten delivery times, and localise the supply chain. Plus, India’s EV policies are quite supportive, along with incentives for manufacturing, a localisation push, and state governments offering land and infrastructure support for major OEMs.
