CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: First it was in the port city of Haiphong, turning a swamp into a state-of-the-art factory. Now, the company is attempting a similar feat in southern India, where the contours of its second major plant are beginning to emerge.

Over a year ago, the land outside Thoothukudi was little more than sun-baked scrubland. Today, assembly lines stand ready, the machinery set to stamp, weld and paint the first Vietnamese-designed electric cars meant for Indian roads.

Phase one alone carries a $500 million investment, part of a $2 billion commitment. The assembly facility can turn out 50,000 vehicles annually, with room to triple output if demand rises, and is expected to create 3,000 to 3,500 jobs. Construction has stayed on schedule since the memorandum of understanding was signed in early 2024, and the first VF 6 and VF 7 models are set to reach Indian customers soon after the ribbon-cutting.

Why India, Why Now

As it scouts the next stop in its global expansion, VinFast sees India, where electric vehicles still make up only a single-digit share of the market, as a market on the edge of rapid growth. Rising environmental concerns and a demand for affordable mobility are reshaping consumer choices. By assembling locally, the company can bypass steep import duties and bring its premium SUVs closer to the budgets of India’s expanding middle class.

But the Tamil Nadu plant is meant to be more than an assembly site. VinFast hopes to replicate a strategy that has served it well in Vietnam: building an ecosystem that integrates production, a network of charging stations, sales to taxi and bus operators, and comprehensive after-sales support, including software updates, repairs and financing.

To deliver this in India, the company has signed 13 distribution partners to open 32 outlets across 27 cities. It has also teamed with RoadGrid, myTVS and Global Assure to establish a charging and service backbone, while working with BatX Energies on recycling and second-life applications to build a closed battery loop and lower lifetime ownership costs.

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