Vietnam’s Vinfast has launched production at its Rs 4,175 crore ($500 million) electric vehicle plant in Thoothukudi, Tamil Nadu, part of a planned Rs 16,700 crore (USD two billion) India investment.

The facility will initially produce 50,000 EVs a year, scalable to 1,50,000, and create over 3,000 local jobs. Proximity to a major port positions it as a future export hub. Tamil Nadu, India’s automotive hub, was chosen after Vinfast evaluated 15 sites across six states, citing strong infrastructure, skilled workforce, and robust supply chain.

Industries Minister TRB Raaja said the project would create a new industrial cluster in south Tamil Nadu, aiding India’s goal of becoming a global manufacturing powerhouse. Vinfast’s India foray aligns with its strategic pivot to Asia amid challenges in the US and Europe. The Tamil Nadu plant will target South Asia, the Middle East, and Africa, leveraging India’s rapidly growing EV market and supportive policy framework.