Global Expansion Will Be, VinFast Builds Factory In India

VinFast VF8. (Doc. VinFast Auto)

VinFast, an automotive company from Vietnam, is a new player in the global vehicle industry. However, this manufacturer made several breakthroughs in order to expand its global market, one of which plans to open manufacturing facilities in India.

Reported by Reuters on Thursday, January 4, the company will open its first manufacturing plant in the region, to be precise in the state of Tamil Nadu, the city of Thoothukudi. Announcements of the construction will be announced in the coming days.

The company will manufacture batteries for electric vehicles at the regional plant, one of the sources said, adding that this was separate from previously announced plans to assemble vehicles sent part of Vietnam.

Several VinFast officials have visited the Thoothukudi district in Tamil Nadu to check its location, said a senior official directly involved in the plan.

Previously, Reuters also reported that the company had started recruiting several workers to start its adventure in the country. However, VinFast did not want to reveal the amount of investment and the certainty of the factory's time in Tamil Nadu operating.

In early October, VinFast will optimize its capital expenditure plan for manufacturing development, which will save up to 400 million US dollars. This will be divided evenly in the first phase of two new factories, namely India and Indonesia.

It is hoped that these factories will be able to produce 50,000 electric vehicles (EVs) annually, with the production period starting in 2026.

VinFast plans to sell all of its EVs in the Asian market, as well as venture into Europe and Canada. Despite its success in entering the US market, VinFast has to face major challenges in competing with giant automakers such as Tesla, Toyota, VW, Honda, and others.