New Delhi, Aug. 4 -- Vietnam's Vinfast on Monday began production at a $500 million electric vehicle plant in southern India's Tamil Nadu state, part of a planned $2 billion investment in India and a broader expansion across Asia.

The factory in Thoothukudi will initially make 50,000 electric vehicles annually, with room to triple output to 150,000 cars. Given its proximity to a major port in one of India's most industrialized states, Vinfast hopes it will be a hub for future exports to the region. It says the factory will create more than 3,000 local jobs.

The Vietnamese company says it scouted 15 locations across six Indian states before choosing Tamil Nadu. It's the center of India's auto industry, with strong manufacturing, skilled ...