VinFast Inaugurates First India EV Plant, Commits to Boosting Local Component Ecosystem

Published: 05 Aug 2025

Author: Precedence Research

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A tech-giant and EV supplier in Vietnam, VinFast, is looking to India as a component dealer for EV production as an EV plant goes live in Tamil Nadu, India. This plan aligns with the company's strategy to turn India into a key consumer marketplace along with a manufacturing-export hub. Companies have talked with various component manufacturers and dealers to improve local sourcing in India. This move aims to build a strong supply chain for its newly launched manufacturing facility in Tamil Nadu. 

According to sources, the CEO of VinFast Asia, Pham Sanh Chau, says that the company is dealing with a number of existing suppliers globally, and most of them are looking to shift their parts of production to India. He further explains by stating, “We also have an inquiry from a manufacturer in Vietnam who would love to shift their plastic production to support our car.” However, he denied mentioning the names of the companies involved. 

VinFast plant in Tamil Nadu is due to an agreement signed last year between the company and the state government. They invested nearly USD 2 billion in it and committed to spending Rs 500 million in the initial five years. The offering, with a planned yearly capacity of nearly 150,000 units, is anticipated to offer its first batch of cars in the showrooms of India during the coming months. However, total costs and model details haven't been disclosed yet. The company has already set a target of global delivery of 200,000 units in 2025, which is highly ambitious and indicates their assertive efforts in the global EV market. 

Within the Indian market, VinFast has already received overseas orders from countries like Nepal, Mauritius, and Sri Lanka. According to the CEO Chau, their plant in Tamil Nadu will also offer to these markets, highlighting their potential in exports. However, he stated that their priority would remain on catering to domestic Indian demand as compared to other countries. Global manufacturers are looking to remove their over-dependency on China due to geopolitical and trade wars. India is therefore an ideal option for the supply chain and to grow business on a large scale, reflecting broader change in the global manufacturing space. 

 VinFast Launches EV Plant in Tamil Nadu: Eyes Local Component Sourcing, ETAuto