As part of the second phase of its $2 billion investment commitment, Vietnam auto major VinFast is set to invest $500 million in Thoothukudi to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations, the company said.
VinFast will get an additional land of 500 acres adjacent its Thoothukudi plant to expand the product portfolio from electric cars to electric buses, e-scooters and charging infrastructure.
The company signed a Memorandum of Understanding (MoU) in Hanoi on Thursday with the TN government, whereby it will be allocated the land in the SIPCOT Industrial Park in Thoothukudi to support the development of the company’s existing facility.
Besides land, the Tamil Nadu government will provide support in securing required permits and in establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management.
For VinFast’s proposed $500 million investment, the State government will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the State’s prevailing regulations and relevant policies,
The existing Thoothukudi facility covers 400 acres and is equipped with internationally standardised production lines. It has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated: “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localisation and strengthen the skills of the local workforce. VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”
Industries Minister TRB Rajaa, said: ”We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India.”
Since entering the Indian market, VinFast has continuously expanded its comprehensive EV ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services and battery recycling, with the Tamil Nadu plant being an important part of this ecosystem. At the same time, the company’s distribution network is rapidly growing, with 24 dealers already operating in major cities and a target of reaching 35 by the end of the year, the release said.
