Vietnamese electric vehicle (EV) maker VinFast plans to set up its first Indian manufacturing facility in the southern state of Tamil Nadu, three sources familiar with the matter said.

The company will make batteries for EVs at the plant in the city of Thoothukudi, one of the sources said, adding that this is separate from its previously announced plans to assemble vehicles shipped in parts from Vietnam.

VinFast, which competes with carmakers such as Tesla and China's BYD, declined to comment.

It said in a statement on Wednesday that it would reveal details of its plans at "an appropriate time".

A spokesperson for the Tamil Nadu government did not immediately respond to a request for comment. (Reporting by Praveen Paramasivam in Chennai and Phuong Nguyen in Hanoi; editing by Jason Neely)