VinFast, the Vietnamese electric vehicle manufacturer, officially inaugurated its first plant in India, located in Thoothukudi, Tamil Nadu. As part of its strategic global expansion, the company is focusing on increasing local sourcing of components to strengthen its supply chain.
Pham Sanh Chau, CEO of VinFast Asia, revealed that the company is in discussions with multiple component suppliers to shift production closer to its Indian operations.
Talks Underway for Local Component Sourcing
Chau stated that several of VinFast’s current suppliers are considering relocating parts of their production to the Indian industrial park. This move is expected to optimize costs and reduce dependency on China, amid rising geopolitical tensions and international trade restrictions.
“We also have an inquiry from a Vietnamese manufacturer interested in moving their plastic production to support our operations here,” Chau added, although no company names were disclosed.
Showroom Launch Expected This Month
VinFast is preparing to roll out its electric cars to Indian showrooms later this month. While the company has yet to announce the official pricing and exact launch date, the anticipation is building as India becomes a key market in its expansion strategy.
Investment and Production Capacity
VinFast signed a landmark agreement with the Tamil Nadu government last year, targeting a total investment of up to $2 billion, with an initial commitment of $500 million over the first five years. The Thoothukudi plant is expected to produce up to 150,000 vehicles annually, bolstering VinFast’s manufacturing footprint outside Vietnam.
India Plant to Serve Global Markets
The newly inaugurated Indian facility is already attracting international interest. Orders have been received from countries including Sri Lanka, Nepal, and Mauritius, suggesting a future role as an export hub for VinFast.
Despite this global ambition, Chau emphasized that the company’s immediate focus is to meet local demand in India.
Global Expansion and Sales Goals
VinFast has set an ambitious target to deliver 200,000 cars globally in 2025. In the first half of this year, the company reported sales of approximately 72,100 units, with the majority sold in its home country, Vietnam.
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Summary
VinFast’s expansion into India marks a significant step toward diversifying its supply chain and reducing reliance on Chinese manufacturing. With local production beginning, export potential rising, and new supplier partnerships being explored, the company is positioning itself as a competitive player in the global EV market.
