VinFast to Invest $500m to Expand Tamil Nadu EV manufacturing

• VinFast will expand its Thoothukudi plant with 200 hectares for e-buses, e-scooters, and charging equipment
• Tamil Nadu will support infrastructure and approvals, with VinFast’s $500 million investment qualifying for incentives
• The expansion will raise capacity to about 150,000 vehicles and strengthen the state’s EV export hub

Recently, Vietnamese electric vehicle (EV) maker VinFast signed a new agreement with the government of Tamil Nadu to increase production capacity and introduce a variety of products to India.

 The Tamil Nadu government will provide VinFast with about 200 hectares of land adjacent to VinFast's existing facility within SIPCOT Industrial Park in Thoothukudi, as part of the second phase of VinFast's $2 billion investment in India and its plans to begin production on new manufacturing lines for electric buses and eScooters to provide charging stations as indicated by Industries Minister Dr TRB Rajaa.

VinFast’s Tamil Nadu investment will boost the VinFast EV plant in India, driving electric bus production in India and e-scooter manufacturing in Tamil Nadu as part of its broader EV manufacturing expansion.

He said, “This would add further momentum to the state’s clean-transport push. The government is committed to ensuring favourable conditions throughout the implementation process so that Vinfast thrives in Tamil Nadu and its ecosystem generates jobs for our people”.

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The Tamil Nadu Ministry of Industry is working closely with VinFast's new partners to streamline the permitting process for VinFast's production facilities, including ensuring that the new facility will have the necessary utilities (electricity, water, internal roads, drainage, and waste disposal) in place at the time of production. VinFast's proposed investment in India of $500 million will be eligible for various incentives and benefits provided under Tamil Nadu's industrial policies.

The plant will allow VinFast to improve its local operations through greater access to local providers of goods and services and, in turn, to create job opportunities in Tamil Nadu.

The plant will be capable of manufacturing vehicles on six global-standardised production lines, allowing for an initial annual production of 50,000 vehicles, increasing to approximately 150,000 vehicles after full capacity is reached.

Pham Sanh Chau, CEO, Vingroup Asia and VinFast Asia stated that the new facility will allow VinFast to meet a wider range of customer needs and provide more jobs in the Tamil Nadu region. He added, “We believe Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and support India’s green mobility goals”.