Vietnam-based electric vehicle manufacturer VinFast regarded as Tesla's rival, plans to establish a manufacturing operation in India. Last month, VinFast Auto became the world's third-most valuable carmaker.

According to the report, the Vietnamese EV manufacturer may establish a plant in either Gujarat or Tamil Nadu.

At present the talks are at the preliminary stage but VinFast Auto is keen to enter India, the report said citing sources.

However, there is no clarity whether VinFast is looking at exports or whether the new production unit would only serve the Indian market.