VinFast Plans India-Specific EVs, gets Approval for Phase 2 of Thoothukudi Plant

VinFast plans to design, develop and manufacture vehicles specifically for India as the Vietnamese electric vehicle maker prepares to expand its operations in the country.

The company has received investment approval for Phase 2 of its Thoothukudi plant expansion plan in Tamil Nadu. VinFast did not disclose the proposed investment, additional capacity or timeline for the expansion.

“For upcoming models, VinFast’s approach is not simply to bring existing products from our global portfolio into the market, but to design, develop and manufacture products specifically for India, tailored to the needs of local customers, while also targeting a much higher level of localisation,” a VinFast spokesperson told Autocar Professional.

Bespoke Product Strategy

VinFast said it has conducted market studies and customer clinics to assess local requirements and expectations for models including the VF 6 and VF 7. Feedback from these exercises helped the company make product changes for Indian customers, it added.

Thoothukudi Facility: CKD Assembly and Phase 2 Expansion

The carmaker currently assembles the VF 6 and VF 7 from completely knocked-down kits at its Thoothukudi facility. VinFast said it has neither changed nor suspended production plans for the two models and will continue CKD assembly to serve the Indian market. The clarification follows a Reuters report citing sources on the company’s production plans.

VinFast said India remains an important part of its long-term business and manufacturing strategy. The company added that the initial response to its products has helped it consistently rank among the five largest electric passenger vehicle brands in the country.

Supply Chain Localization

The carmaker is also working to expand its local supplier base. It has held supplier conferences in India and Vietnam involving more than 300 Indian suppliers to explore sourcing opportunities and increase localisation.

“Building a sustainable and resilient supply chain is the foundation of VinFast’s long-term strategy in India. Accordingly, we are accelerating our operations in line with the ‘Make in India’ direction,” the spokesperson said.

VinFast is also engaging with government agencies on policy measures to support further production and investment by global electric vehicle manufacturers in India. The company described the Phase 2 approval as an important step towards expanding capacity at the Thoothukudi plant.