Tesla Rival VinFast Plans June Launch for EV Plant in Tamil Nadu

Tesla’s Nasdaq-listed rival, Vietnamese electric vehicle maker VinFast, is reportedly planning to open its car assembly plant in India’s southern state of Tamil Nadu by the end of June. The company had earlier selected Thoothukudi as the location for its plant with a planned investment of $2 billion.

The update was shared by VinFast CEO and Vingroup Chairman Pham Nhat Vuong during a shareholders' meeting on April 24, according to a Reuters report. Vuong said they plan to launch their India facility by June-end and their plant in Indonesia by October.

"In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines. At the moment, VinFast is not planning to boost sales in the United States, Canada, and the European Union due to high logistics costs," Vuong said, as quoted by the news agency.

Founded in 2017 by Vietnam’s richest individual, VinFast has postponed its plans to build a $4 billion manufacturing facility in North Carolina, USA, pushing the timeline to 2028. The US project is currently on hold as the company awaits more favorable market conditions, Vuong noted.

In contrast, the automaker is aggressively expanding in Asian markets. Last year, it signed an agreement with the Tamil Nadu government for an investment of up to $2 billion, with an initial commitment of $500 million in the first five years. The upcoming integrated EV facility in India is expected to have an annual production capacity of up to 150,000 vehicles and generate 3,000–3,500 local jobs.

In January, Pham Sanh Chau, former diplomat and current CEO of VinFast's Asia operations, said Thoothukudi was chosen due to its proximity to a seaport and airport, making it suitable for exports. He also noted that while VinFast operates two plants in Vietnam, with the new site in they are targeting not just the Indian market, but also West Asia and Africa.

At the Bharat Mobility Global Expo 2025, the company unveiled two premium electric SUVs—the VF 6 and VF 7—tailored for India. These models are expected to launch later this year.

Tesla’s India Plans

Meanwhile, Tesla, led by Elon Musk, is ramping up efforts to establish a presence in India. The discussions have gained momentum under the current US administration, supported by Musk’s ties with former President Donald Trump.

Earlier this year, Musk met with Prime Minister Narendra Modi during the latter’s US visit to explore investment opportunities. They also spoke by phone recently, after which Musk announced plans to visit India later in 2025.

Tesla has reportedly leased a 5,850 sq. ft. office in Pune, and in February, began hiring in India, posting job openings for 13 positions in Mumbai and Delhi.