Vietnamese VinFast, Tesla Competitor, To Put Up EV Battery Plant In TN, India

Thoothukudi, Jan 4 (KNN) VinFast, a Vietnamese Electric Vehicle manufacturer positioned as a competitor to Tesla, is in the process of establishing its inaugural manufacturing facility in Tamil Nadu, India.

The company’s new plant, which will be opened in the city of Thoothukudi, will produce batteries designed for EVs, Reuters reported, citing sources close to the matter.

One of the sources revealed to Reuters that numerous VinFast representatives have visited the Thoothukudi district in Tamil Nadu to assess potential sites.

In September, reports emerged indicating that VinFast had initiated the recruitment process for sales, legal, and back-office positions in India.

However, the investment size and operational timeline for VinFast's venture in Tamil Nadu are currently unclear.

The company is actively investigating possibilities to introduce both electric scooters and cars to the Indian market.

In October, VinFast unveiled its intentions to build assembly factories in India and Indonesia, each with a capacity of up to 50,000 cars annually

The initial capital expenditure for this venture is projected to reach up to USD 200 million, with production scheduled to commence in 2026.

At the same time, VinFast's founder-owned electric vehicle taxi operator, Green SM, is actively preparing to establish its footprint in India, as disclosed by VinFast CEO in October.

Meanwhile, other major players of the industry such as Tesla and Gogora are also setting up in the country.

As of December 29, according to Vahan data, the registrations of electric vehicles (EVs) in the country increased from 10.25 lakh units in the previous year to 15.13 lakh units in 2023.

In the electric vehicle segment, two-wheelers maintain their lead, with registrations of two-wheeler EVs in the country experiencing a 34 per cent year-on-year (YoY) growth, reaching 8.49 lakh units in 2023.

(KNN Bureau)