Vietnam’s VinFast in talks to boost local sourcing as first India plant opens

The plant is expected to have an annual production capacity of up to 150,000 vehicles

Published Mon, Aug 4, 2025 · 02:02 PM

[THOOTHUKUDI, India] Vietnamese electric vehicle maker VinFast is in talks with several component manufacturers as it looks to source more from India, the company’s Asia CEO said on Monday (Aug 4).

The firm is in discussions with several of its current component suppliers, and some want to shift part of their production to the industrial park in India, VinFast Asia CEO Pham Sanh Chau said on the sidelines of the inauguration of its Indian plant in the southern city of Thoothukudi.

Global manufacturers are increasingly looking to diversify their supply chains by shifting production to India, as rising geopolitical tensions, trade restrictions, and cost pressures make China less attractive as a sole manufacturing base.

“We also have an inquiry from (a manufacturer in) Vietnam who would love to shift their plastic production to support our car,” he said, though he did not provide names of companies considering the shift.

VinFast plans to roll out cars to showrooms in India later this month, he added. The pricing and exact launch date have not yet been disclosed.

Last year, VinFast and Tamil Nadu state agreed to work towards an investment of up to US$2 billion, with an intended commitment of US$500 million for the first five years. The plant is expected to have an annual production capacity of up to 150,000 vehicles.

Chau also said that the Indian plant had received orders from Sri Lanka, Nepal, Mauritius and these initial overseas orders were positioning the India facility to become an export-oriented manufacturing hub, though the firm’s immediate focus remained on meeting demand from Indian customers.

VinFast has set a global delivery target of 200,000 cars for 2025, having sold about 72,100 units in the first half of the year, primarily in its home market. REUTERS

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