Vinfast Steps Up Global Expansion With $ 2 Billion EV Plant In India

The factory in southern India's Tamil Nadu state will be the company's first foray into India and follows VinFast's launch of sales in the United States and other major markets.  

The plan highlights the company's commitment to a "vision of a zero-emission transportation future," Tran Mai Hoa, the company's deputy CEO of sales and marketing, said in a statement.  

VinFast said it is committing USD 500 million in the first phase of construction and plans to transform the region around the port city of Thootukudi into a "first-class electric vehicle production hub." It said the factory will have a capacity to roll out 150,000 cars annually. It gave a few other details.  

VinFast is part of Vingroup, a sprawling conglomerate that began as an instant noodle company in Ukraine in the 1990s and was founded and is run by Vietnam's richest man, Pham Nhat Vuong.  

This will be VinFast's first foray into India and is part of a global expansion that includes EV exports to the United States. It is building a USD 4 billion EV factory in North Carolina, where production is slated to begin this year.  

The company aims to sell in 50 markets worldwide by the end of this year. In October, it said it plans to build a USD 400 million electric vehicle factory in Indonesia. It has started shipping EVs made in Vietnam to neighbouring Laos to serve as a fleet for Green SM, an EV taxi operator mainly owned by VinFast's founder.  

Last year, Vinfast listed its shares on the Nasdaq, seeing them balloon in value, with its market value shooting briefly above those of General Motors Corp. and Ford Motor Co. in late August. However, investor enthusiasm has cooled, and the company lost over USD 1.4 billion in the first three quarters of 2023.  

While it has struggled to sell its EVs in the US and its early cars have received bad reviews, the company maintains that if it can succeed in the crowded and competitive American market, it can grow anywhere.