CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: Once celebrated for its pearl fisheries, Thoothukudi has grown into a major port city and a cornerstone of Tamil Nadu’s maritime trade. For generations, its docks shipped cotton yarn, salt and dried fish, sustaining the local economy.

Now the city stands on the brink of another transformation. VinFast’s 400-acre electric vehicle assembly plant in the SIPCOT industrial park has been launched on August 4, backed by an intial $500 million investment and a phase-one capacity of 50,000 vehicles annually. The project is expected to reshape Thoothukudi’s industrial identity and anchor a new phase of growth in southern Tamil Nadu.

VinFast Plants Stakes in Southern Tamil Nadu

Founded in 2017 as part of Vietnam’s Vingroup conglomerate, VinFast rapidly became the country’s top-selling car brand by 2024, its all-electric SUVs earning recognition in North America, Europe and Southeast Asia.

India, with its fast-growing EV market and supportive policies, was the next logical step. After evaluating 15 sites across six states, VinFast chose Tamil Nadu for its port access, strong infrastructure, skilled workforce, and a proactive government committed to building the state’s first all-electric vehicle cluster.

The new plant will integrate welding, painting and final assembly under one roof, with the first vehicles—the premium VF 6 and VF 7 designed for Indian buyers—expected to roll out later this year. It forms the centerpiece of VinFast’s broader plan for India, which is focused on building a comprehensive EV ecosystem. As part of this strategy, the company is partnering with RoadGrid and myTVS to establish hundreds of service centers, working with BatX Energies on battery recycling to create a sustainable closed-loop process, and collaborating with 13 dealer groups to launch 35 dealerships in 27 cities, ensuring wide sales coverage from day one.

“VinFast is committed to making EVs more accessible while contributing to economic growth through investment and local job creation,” a company spokesperson said, positioning the brand as a ‘global premium EV’ that remains within reach of Indian consumers.

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