Tamil Nadu's newest electric vehicle manufacturing hub is taking form with the VinFast plant
Thoothukudi, a town in Tamil Nadu, is set to reshape its industrial identity with the launch of a new electric vehicle (EV) assembly plant by VinFast. The plant, located in the SIPCOT industrial park, has an initial capacity of 50,000 vehicles annually and is expected to generate 3,000 to 3,500 direct jobs [1].
Backed by an initial $500 million investment, VinFast's 400-acre plant is a flagship project in Tamil Nadu's strategic plan to establish itself as a key player in the EV industry in South Asia [3][4][5]. The plant aims to assemble premium models VF 6 and VF 7, with an initial capacity of 50,000 units per year, scalable to 150,000 units depending on market demand [1][4][5].
VinFast's presence in Thoothukudi strengthens Tamil Nadu's broader EV ecosystem, which includes the establishment of 500 EV charging stations statewide by Tamil Nadu Green Energy Corporation Ltd (TNGECL) [2]. The state government is collaborating closely with VinFast to boost both domestic sales and exports to South Asia, the Middle East, and Africa, positioning Thoothukudi as a key export hub [1][3].
The Thoothukudi plant is integral to Tamil Nadu’s ambition to become the "EV capital of South Asia" by leveraging the state's robust industrial infrastructure, skilled workforce, and strategic port access [1][3][4]. The state government supports VinFast’s facility as part of its comprehensive EV policy to lead green mobility and aims to become a trillion-dollar economy by 2030 [4].
Key elements of the strategy include:
- Establishing a flagship, scalable EV manufacturing hub at Thoothukudi with initial 50,000 vehicle capacity, scalable to 150,000 annually [1][4][5].
- Driving employment and industrial growth through the creation of thousands of direct and indirect jobs in the region [1][4].
- Positioning Tamil Nadu as a regional export hub for South Asia, the Middle East, and African markets, leveraging port access for global EV supply chains [1][3][5].
- Developing a comprehensive EV ecosystem by expanding charging infrastructure statewide to support EV adoption [2].
- Collaborative government-industry partnerships to build Tamil Nadu’s reputation as a global EV manufacturing leader and to stimulate economic growth aligned with green mobility policies [3][4].
The new plant will integrate welding, painting, and final assembly under one roof and is expected to roll out its first vehicles later this year. Every job in auto manufacturing in Tamil Nadu can generate another 4 to 11 positions, whether in component suppliers, transport and logistics, or in shops and services [6].
VinFast's arrival in Thoothukudi underscores Tamil Nadu's bet on EVs as a path to inclusive growth. The all-electric SUVs from VinFast have earned recognition in North America, Europe, and Southeast Asia [7]. VinFast positions itself as a 'global premium EV' that remains within reach of Indian consumers [7].
The town is set to become Tamil Nadu's first all-electric automotive cluster and its fourth major auto hub, joining Chennai, Coimbatore, and Hosur [8]. Through the state's "Naan Mudhalvan" program, hundreds of students have completed training in technical, aptitude, and communication skills, preparing them for roles in the growing EV industry [9].
VinFast's broader plan for India includes partnering with RoadGrid and myTVS to establish hundreds of service centers, working with BatX Energies on battery recycling, and collaborating with 13 dealer groups to launch 35 dealerships in 27 cities [10]. India, with its fast-growing EV market and supportive policies, was the next logical step for VinFast's expansion [11].
References:
- The Hindu
- The Times of India
- Business Today
- Economic Times
- Live Mint
- The Hindu BusinessLine
- CNBC
- Deccan Chronicle
- The New Indian Express
- Business Standard
- The Indian Express
