VinFast To Invest Additional $500 Million To Expand Tamil Nadu Plant
VinFast will invest $500 million in the facility to develop new dedicated workshops and production lines for electric buses and e-scooters.
Vietnamese electric vehicle maker VinFast on Thursday said it will expand its Tamil Nadu-based manufacturing plant to roll out electric buses and scooters, entailing an investment of $500 million.
The company has inked a Memorandum of Understanding with the Tamil Nadu government for an additional land parcel of 200 hectares adjacent to its existing facility in the SIPCOT Industrial Park in Thoothukudi, Tamil Nadu.
As the second phase of its existing $2 billion commitment, VinFast will invest $500 million in the facility 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 in a statement.
The Thoothukudi plant currently covers 160 hectares with an initial annual capacity of 50,000 electric vehicles, which is being expanded to 1.5 lakh units.
'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,' VinFast Asia CEO Pham Sanh Chau said in a statement.
VinFast believes that Tamil Nadu will continue to serve as a strategic hub in the company's global expansion journey and will play an important role in supporting India's green mobility goals in the years ahead, he added.
Tamil Nadu Minister of Industries TRB Rajaa said the state government is committed to working closely with VinFast and ensuring favourable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and its flourishing ecosystem provides jobs for Tamil Nadu.
As per the MoU, the state 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.
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.
