Tamil Nadu is rapidly emerging as one of India’s most attractive destinations for electric vehicle manufacturing, and VinFast’s latest investment is a strong endorsement of that momentum. Speaking at the NDTV Tamil Nadu Summit on 30 January 2026, Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, explained why the company chose the state for its ambitious EV Factory in Tamil Nadu and how quickly the project moved from idea to execution.
Why VinFast Chose Tamil Nadu?
According to Chau, the decision to invest was driven by the state’s clear policies, strong infrastructure, and proactive governance. VinFast scouted land within just one month and soon engaged with the Tamil Nadu government. Another month later, the company signed a Memorandum of Understanding, marking the official start of its journey to establish an EV Factory in Tamil Nadu. This swift decision-making process highlighted the ease of doing business and the confidence global investors have in the state.
Rapid Execution and Manufacturing Vision
One of the most striking aspects of the project is its speed. Construction of the Thoothukudi (Tuticorin) plant was completed in just 15 months after the MoU was signed. The facility has started operations with an annual capacity of 50,000 vehicles and is planned to scale up to 150,000 units per year.
Strategically, the plant is being developed as VinFast’s largest export hub for South Asia, the Middle East, and Africa. Currently, localization stands at around 15%, but the company aims to increase this to 40% by partnering with Indian suppliers, including local battery manufacturers such as the Tata–Gotion joint venture. This approach strengthens the long-term vision of the EV Factory in Tamil Nadu as part of a robust domestic ecosystem.
Products, Expansion, and Jobs
The facility currently assembles the VF 6 and VF 7 electric SUVs. In February 2026, VinFast plans to launch a 7-seater Limo Green MPV, followed later in the year by the VF 3 and VF 5. Beyond cars, VinFast signed an additional MoU in December 2025 for 500 acres to expand into electric buses and e-scooters.
The project is expected to create around 3,500 direct jobs, along with thousands of indirect employment opportunities across the supply chain.
Policy Support and the Road Ahead
Industry leaders at the summit echoed similar praise. Allison Transmission’s MD K Moses highlighted the strong support from Guidance Tamil Nadu, while its CEO Darez Ahamed emphasized the state’s strengths in talent, logistics, R&D, and return on investment.
VinFast is also re-engaging with India’s SPMEPCI incentive scheme to further support its manufacturing plans. Together, these factors position the EV Factory in Tamil Nadu as a strategic milestone in India’s electric mobility journey and VinFast’s global expansion strategy.
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