VinFast, a Vietnamese electric vehicle manufacturer, is poised to establish its first manufacturing facility in India.
This facility, where batteries will be produced, is planned to be located in the southern state of Tamil Nadu, Reuters reported citing people familiar with the matter.
The manufacturing of batteries for electric vehicles will take place at the plant located in Thoothukudi city.
This was separate from the company's previously announced plans to assemble vehicles shipped in parts from Vietnam.
VinFast, a competitor to automakers like Tesla and China's BYD, is expected to make an announcement about the new factory in the upcoming days.
In a statement released on Wednesday, VinFast announced that it will disclose the specifics of its plans at "an appropriate time".
A number of VinFast officials have made trips to the Thoothukudi district in Tamil Nadu to inspect potential sites, according to a senior official directly engaged in the matter.
In September, Reuters reported that VinFast had initiated recruitment for roles in sales, legal, and administrative positions in India, looking for candidates who "dare to think, dare to do, and dare to face difficulties".
The specifics regarding the scale of the investment and the commencement date for the VinFast factory in Tamil Nadu are not immediately clear.
In October, VinFast announced plans to establish assembly factories in India and Indonesia.
Each factory is projected to have an annual production capacity of up to 50,000 cars and an initial capital expenditure of up to $200 million. The company stated that production is set to begin in 2026.
In another development, Green SM, an EV taxi company mostly owned by the founder of VinFast, also intends to set up operations in India, which is the world's third-largest automotive market, VinFast CEO Le Thi Thu Thuy had said in an interview with Reuters in October.
VinFast is also considering the introduction of both e-scooters and e-cars to the Indian market.
Tamil Nadu's capital city Chennai, dubbed the Detroit of Asia, and other districts already are host to several EV players including Indian two-wheeler makers Ola Electric and Ather as well as China's BYD.
Kuldeep is Senior Editor (Newsroom) at Swarajya. He tweets at @kaydnegi.
An appeal from Swarajya
We are counting on you!