VinFast, a prominent Vietnamese electric vehicle manufacturer, has made its debut in the Indian market. The ceremonial laying of the foundation stone for VinFast Group’s electric vehicle (EV) manufacturing plant in Tuticorin, Tamil Nadu, marked the commencement of its operations in India. A milestone graced by the esteemed presence of Tamil Nadu’s Chief Minister, M.K. Stalin.

This momentous occasion heralds the official entry of yet another international automotive giant into the Indian market with VinFast emerging as the latest addition. Renowned for its high-performing electric cars, VinFast solidified its foothold in India as Chief Minister M.K. Stalin officiated the laying of the cornerstone for VinFast Group’s pioneering EV manufacturing facility in Tuticorin.

According to reports from the Tamil Nadu government, Vinfast Auto India Limited, the Indian subsidiary of VinFast Group, is set to invest Rs 4,000 crore in the initial phase of development, as part of a larger commitment totaling Rs 16,000 crore ($2 billion). This investment pact was formalized through a memorandum of understanding (MoU) inked between Vinfast Auto Ltd and the Tamil Nadu government during the Global Investors Meet convened in January.

Spanning across 380 acres in Tuticorin, Tamil Nadu, VinFast’s state-of-the-art manufacturing plant is poised to boast a production capacity of 1.5 lakh vehicles annually. With this ambitious undertaking, Tamil Nadu not only solidifies its position as the automotive capital of India but also emerges as a frontrunner in the nation’s electric vehicle landscape.

During the foundation stone-laying ceremony of VinFast’s factory, Tamil Nadu’s Industry Minister T.R. B. Raja highlighted that Tamil Nadu already accounts for over 70 percent of electric two-wheelers and more than 40 percent of electric four-wheelers sold nationwide, underscoring the state’s pivotal role in the burgeoning EV sector.

VinFast’s foray into the Indian market is reflective of its global expansion strategy, with the company gaining traction in major international markets by offering aesthetically pleasing electric vehicles boasting impressive range and features, particularly in the electric SUV segment. Noteworthy models from VinFast’s lineup include VF8, VF9, VF7, and VF6, which are poised to vie for market share alongside offerings from established players such as Tata, Mahindra, Hyundai, Kia, and BYD in the Indian EV landscape.