Vietnamese electric automaker VinFast is considering the southern state of Tamil Nadu as the site of its planned new electric vehicle battery factory in India, Reuters reports, citing three sources familiar with the matter. Notably, it will mark the company’s first-ever Indian production facility.
Plan details
One of the three unnamed sources revealed VinFast’s plans to produce electric vehicle batteries in Thoothukudi, Tamil Nadu, in 2024. The source further noted that this plan is separate from the previously announced VinFast EV assembly facility in the country.
In hindsight, VinFast previously disclosed that it would import EV parts from Vietnam and assemble them in India.
VinFast has yet to confirm the three sources’ claims. It announced on Wednesday that it will disclose more details about its plans at “an appropriate time.”
Nonetheless, an unnamed senior official directly involved in the matter revealed the recent visits of several company officials to Thoothukudi.
“Several VinFast officials have visited Thoothukudi district in Tamil Nadu to check out sites.”
A senior official directly involved in the matter said on Tuesday
In addition, the first source also noted that VinFast is also looking to import e-scooters and e-cars to India, according to CarSifu.
VinFast’s recent moves in India
Previous reports revealed that VinFast already started hiring people for various positions, including sales, legal, and back office jobs, in India since September 2023.
The company emphasized in its job advertisements its need for employees who “dare to think, dare to do, and dare to face difficulties.”
However, how much VinFast is planning to invest in Tamil Nadu remains to be seen. The Vietnamese automaker also has yet to announce the timeline for the new battery factory’s launch.
VinFast to launch a local EV factory
EV-a2z reported in late September that VinFast is looking to open a local EV production in India. According to people “aware of the development,” the company was considering Tamil Nadu and Gujarat for the “significant” investment.
“The talks are in the preliminary stages but VinFast is very keen on setting up in India.”
One of the sources
Given that VinFast is reportedly planning to erect its new battery factory in Tamil Nadu, it would only be reasonable for the company also to develop its EV factory in the city.
VinFast’s potential local production in Tamil Nadu is unsurprising, considering the city’s prosperous electric vehicle industry. In fact, it already has several players like Ola Electric, Ather, and Chinese giant BYD.
VinFast’s notable interest in the Indian market comes amid the growing demand for EVs in the country. It also demonstrates the Vietnamese automaker’s strategy to challenge industry leaders like Tesla and BYD in the global market.
