Vietnam's VinFast will set up an electric vehicle battery plant in India

Vietnamese electric car maker VinFast will open its first factory to produce batteries in the southern Indian state of Tamil Nadu. The company will produce electric vehicle batteries at the plant in the city of Thoothukudi, people familiar with the matter said, adding that this is separate from the company's previously announced plan to import parts from Vietnam to assemble cars. The company expects to make an announcement about the new plant in the coming days.

VinFast said in October it would build assembly plants in India and Indonesia with an annual capacity of up to 50,000 vehicles each and initial capital expenditures of up to $200 million. Production will begin in 2026, it added. Separately, VinFast CEO Le Thi Thu Thuy told Reuters in October that electric taxi operator Green SM also plans to set up operations in India.