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Vietnam's VinFast in talks to boost local sourcing as first India plant opens
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Vietnam's VinFast in talks to boost local sourcing as first India plant opens
Aug 3, 2025 9:59 PM

THOOTHUKUDI, India, Aug 4 (Reuters) - 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.

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 told Reuters 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 added, 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 said. 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 $2 billion, with an intended

commitment of $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 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.

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