Vietnam's EV maker VinFast to set up its first battery plant in Tamil Nadu

VinFast, the Vietnamese electric vehicle manufacturer, is all set to open its first manufacturing facility in India, focusing on the production of EV batteries, three people familiar with the matter told Reuters, adding that this facility will be located in the southern state of Tamil Nadu. The company will make batteries for EVs at the plant in the city of Thoothukudi, one of the people said, adding that this was separate from its previously announced plans to assemble vehicles shipped in parts from Vietnam. According to sources, the company’s objective is to manufacture batteries for electric vehicles (EVs) at this plant, distinct from its previous declaration regarding the assembly of vehicles using parts shipped from Vietnam. While VinFast has not provided an official statement, an announcement regarding the new plant is anticipated in the coming days. VinFast said in a statement on Wednesday that it would reveal details of its plans at “an appropriate time”. A spokesperson for the Tamil Nadu government did not immediately respond to a request for comment. “Several VinFast officials have visited Thoothukudi district in Tamil Nadu to check out sites,” a fourth source, a senior official directly involved in the matter, said on Tuesday. Reuters reported in September VinFast had begun hiring for sales, legal and back office jobs in India, seeking recruits who “dare to think, dare to do, and dare to face difficulties.” It is not immediately clear what the size of the investment is or when a VinFast factory will become operational in Tamil Nadu. VinFast in October said it would build assembly factories in India and Indonesia, with each of them having a capacity of up to 50,000 cars per year and capital expenditure of up to $200 million initially. It added production will commence in 2026. Separately, Green SM, EV taxi operator, mostly owned by VinFast’s founder, also plans to establish in India, the world’s third-largest automotive market, VinFast CEO Le Thi Thu Thuy told Reuters in October. VinFast is also open to bringing both e-scooters and e-cars to India, the first source said. Tamil Nadu’s capital city Chennai, dubbed the Detroit of Asia, and other districts already are host to several EV players including Indian two-wheeler makers Ola Electric and Ather as well as China’s BYD. With inputs from Reuters.