Key Highlights
- VinFast’s new Thoothukudi plant will produce EV batteries
- VinFast announced plans for assembly factories in India and Indonesia
- The investment size and operational timeline for Tamil Nadu are unclear
Vietnamese electric vehicle manufacturer, VinFast, often seen as a rival to Tesla and BYD from China, is looking to establish its first manufacturing facility in India, specifically in the Tamil Nadu region. Also Read | Ayodhya Introduces EV Golf Car Service Ahead Of Ram Mandir Inauguration
Battery Production Plant In Thoothukudi
VinFast plans to open a new plant in Thoothukudi, focusing on the production of batteries for electric vehicles, according to sources close to the matter cited by Reuters.
Exploring Opportunities In India
VinFast has been actively exploring opportunities in India, with reports in September indicating hiring efforts for various roles such as sales, legal, and back-office positions.
Investment Size And Timeline
While the exact investment size and operational timeline for the Tamil Nadu plant remain unclear, the company is considering bringing both electric scooters and cars to the Indian market.
Also Read | Tesla Achieves Record Q4 Deliveries, Misses Top Spot To BYD
Global Expansion Plans
In October, VinFast announced plans to build assembly factories in India and Indonesia, each with a capacity of up to 50,000 cars annually. The initial capital expenditure for these projects is estimated to reach up to $200 million, with production scheduled to begin in 2026.
Tesla’s Entry into India
Concurrently, Tesla is in the final stages of negotiating the establishment of its manufacturing plant in Gujarat, India. The electric vehicle manufacturer is expected to enter the Indian market soon.
Gogoro’s Investment In India
Gogoro, a Taiwanese battery-swapping company, is also planning to increase its investments in India. The focus is on manufacturing electric two-wheelers and developing a battery-swapping infrastructure for these vehicles in the coming years.
EV Market Growth In India
As of December 29, according to Vahan data, EV registrations in India rose to 15.13 lakh units in 2023, up from 10.25 lakh units the previous year. Two-wheelers continue to dominate the EV space, with registrations growing 34 percent year-on-year to 8.49 lakh units in 2023.
Also Read | Tata Punch EV Test Mule Spotted Again: Redesigned Interiors?
