CHENNAI: Thoothukudi is rapidly emerging as a key player in India’s automotive sector, with works of Vietnamese electric vehicle (EV) manufacturer VinFast’s new plant nearing completion in the region.
According to sources in the Industries Department, 90% of the construction is complete, and production is expected to commence within the next two to three months.
“Thoothukudi is now emerging as the state’s fourth major auto cluster after Chennai, Krishnagiri, and Coimbatore, further strengthening our position in the sector,” said Industries Minister TRB Rajaa.
VinFast officials held discussions earlier this week regarding the import of crucial EV components. The talks also covered plans to establish shipping logistics and liner connectivity with Vietnam’s Port of Hai Phong. This will facilitate both the import of essential parts and the export of finished vehicles to markets across India and abroad.
Industry insiders revealed that VinFast plans to bring in 2,000 TEUs (twenty-foot equivalent units) of components to kick-start production, set for May, with an official plant inauguration expected in June. Initially, the company will focus on the domestic market before expanding its exports globally.
According to Tamil Nadu’s investment promotion agency, Guidance, Thoothukudi is on track to become the state’s next major hub for EV manufacturing and battery production.
“Phase I alone will produce 1,50,000 units annually, supported by a supplier park under development. With its superior seaport connectivity, Thoothukudi promises faster exports and greater efficiency. The project is also expected to generate 3,500 new jobs,” Guidance announced on social media.
The Automotive Component Manufacturers Association (ACMA) and Guidance Tamil Nadu hosted an event here on Thursday, attended by Industries Minister TRB Rajaa. Speaking at the event, he highlighted Tamil Nadu’s leadership in auto manufacturing, with established clusters in Chennai, Krishnagiri, and Coimbatore.
The minister also emphasised Tamil Nadu’s robust auto component ecosystem, comprising over 400 manufacturers and major tyre producers, achieving 70-80% localisation of vehicle components.
The state has already identified Coimbatore, Tiruchi, Madurai, Salem, and Chennai for developing them as EV hubs. Some natural advantages that aid the sector include the vast availability of a highly competent, trained workforce, an excellent network and supply chain of ancillary suppliers, a vibrant auto and auto component manufacturing ecosystem, and TN’s excellent infrastructure and logistic support systems. With Thoothukudi’s strategic port connectivity and expanding automotive infrastructure, the region will play a key role in EV revolution.