VinFast breaks ground on EV factory in Indonesia
VinFast is constructing its Indonesian EV factory in a developing industrial area in Subang (West Java), approximately 125 km southeast of the national capital Jakarta. The company plans to install an annual production capacity of 50,000 vehicles at the upcoming overseas plant. It will make right-hand drive models for domestic sales starting in the fourth quarter of 2025.
VinFast is building a full-fledged manufacturing facility in Indonesia, not a mere SKD/CKD assembly. The company plans to include key production facilities like a body shop, paint shop, and general assembly shop in the factory. Moreover, it will operate a vehicle testing facility also at the site.
VinFast entered Indonesia with the VF e34 in March and launched the VF 5 this month. The Vietnamese automaker will expand its portfolio with the VF 3, VF 6, and VF 7 and build them all locally, along with the VF 5, at the upcoming Subang plant. The company has yet to announce the percentage of localisation which it aims for each of these models.
VinFast is also building an EV plant in India to strengthen its operations in Asia. The company is considering first assembling cars from imported knocked-down kits at the Indian factory and may commence full-fledged production at a later stage. Located in Thoothukudi (Tamil Nadu) and spanning an area of 400 acres (1,618,743 m2), this production facility will have an annual production capacity of 150,000 units.
In related news, VinFast has delayed the start of production at its US plant, located in Chatham County (North Carolina). In 2022, the company expected to start production at the US factory in July 2024, but later it postponed the start of production (SOP) to 2025. It has postponed that timeline to 2028.
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