VinFast: VinFast drives into India with a USD 2 Billion EV Factory Investment in Tamil Nadu

Vietnamese automaker VinFast is allocating USD 2 billion for the construction of an electric vehicle (EV) factory in India, targeting the world’s third-largest auto market, said an AP report. This venture into India, located in Tamil Nadu state, follows VinFast’s successful sales launch in the United States and other major markets.
Emphasizing their commitment to a zero-emission future, VinFast’s Deputy CEO of Sales and Marketing, Tran Mai Hoa, stated that USD 500 million would be invested in the initial construction phase, aiming to transform the Thootukudi region into a premier EV production hub capable of manufacturing 150,000 cars annually. Part of the Vingroup conglomerate, founded and led by Vietnam’s wealthiest individual, Pham Nhat Vuong, this marks VinFast’s maiden entry into India amidst a global expansion strategy.

Beyond the Indian venture, VinFast is investing USD 4 billion in an EV factory in North Carolina, set to commence production this year. The company is eyeing sales in 50 markets worldwide by the end of 2023 and plans a USD 400 million EV factory in Indonesia.
Despite a successful Nasdaq listing in 2022, with market value briefly surpassing General Motors Corp. and Ford Motor Co., VinFast faced a downturn in investor enthusiasm, reporting a loss exceeding USD 1.4 billion in the first three quarters of 2023. The company, known for its ambition, asserts that success in the competitive American market indicates potential success globally, despite initial challenges in the US EV market and mixed reviews for its early car models.