VinFast Auto, a competitor of Tesla, is constructing an electric vehicle (EV) and battery manufacturing plant in Thoothukudi, near Chennai. The facility will initially be able to produce 150,000 EVs, according to reports.

According to reports, that VinFast is expected to make an official announcement on Saturday and that the overall investment in the 400-acre complex may ultimately reach $1 billion or perhaps more.

Phase one of the plant's capacity is probably going to be about 150,000 cars, and VinFast plans to manufacture 50,000 units there in the first year.

The largest conglomerate in Vietnam, Vingroup, said in October that VinFast, its electric vehicle division, will construct assembly plants in India and Indonesia with a combined yearly capacity of 50,000 cars, requiring an initial capital outlay of up to $200 million.

VinFast was looking at possible locations for its intended factory in India and had already visited Manalur and Thoothukudi in Tamil Nadu.

At the time, the company is aimed to start assembling vehicles by 2026 in what it has termed as a market with tremendous potential.

VinFast anticipates assembling automobiles in Indonesia and India using completely knocked down, or CKD, kits. Establishing factories in these markets can give access to favorable raw material prices, exemption from some tariffs and taxes, and government incentives for regional manufacturing.

At the moment, VinFast operates a manufacturing plant in Hai Phong, Vietnam. The business began construction of its 1,800-acre first American facility on July 28. It houses primary production areas for body, paint, and general assembly shops in addition to other manufacturing facilities. It stated that in the first phase, its annual production capacity is anticipated to exceed 150,000 automobiles.