VinFast Accelerates India EV Push with Local Sourcing and Export Plans
- VinFast and Tamil Nadu have agreed on a potential $2 billion investment, with $500 million committed in the first five years.
- The company is in talks with component suppliers to shift production to its India plant in Thoothukudi.
- The facility has received orders from Sri Lanka, Nepal, and Mauritius, positioning it for regional exports.
Vietnamese electric vehicle (EV) maker VinFast is in active talks with several component suppliers to increase local sourcing from India, the company’s Asia CEO Pham Sanh Chau revealed on Monday. Speaking at the inauguration of VinFast’s new manufacturing facility in Thoothukudi, Tamil Nadu, Chau noted that some existing suppliers are exploring moving part of their production to the company’s industrial park in India.
The shift aligns with a broader global trend of supply chain diversification, as manufacturers seek alternatives to China amid rising geopolitical tensions, trade restrictions, and cost pressures. “We also have an inquiry from a Vietnamese manufacturer who wants to shift their plastic production to support our cars”, Chau added, though he did not name specific companies.
VinFast plans to roll out its EVs to Indian showrooms later this month, though pricing and an exact launch date are yet to be disclosed.
The company had previously signed an agreement with the Tamil Nadu government for a potential $2 billion investment, with an initial commitment of $500 million over five years. The Thoothukudi plant is expected to produce up to 150,000 vehicles annually.
Chau also shared that the Indian plant has already received export orders from countries including Sri Lanka, Nepal, and Mauritius. While the immediate focus remains on catering to Indian customers, the facility is also being positioned as an export-oriented manufacturing hub.
VinFast has set an ambitious global delivery target of 200,000 units for 2025, having sold approximately 72,100 cars in the first half of the year, primarily in Vietnam. With its India foray, the company aims to accelerate its international expansion in the rapidly growing EV market.
