Vietnamese EV manufacturer VinFast India has announced a major expansion of its Tamil Nadu manufacturing facility with a $500 million investment. The project aims to increase production capacity for electric cars, buses, scooters, and charging infrastructure, supporting the company’s broader strategy in India’s fast-growing EV market.
Hyderabad: VinFast India, the Indian subsidiary of the Vietnamese electric vehicle maker VinFast, has announced a significant boost to its manufacturing capabilities. The company has signed a new Memorandum of Understanding (MoU) with the Tamil Nadu government to expand its Thoothukudi facility.
Under the new agreement, VinFast will receive around 200 hectares (approximately 500 acres) of land in the SIPCOT Industrial Park. This expansion will allow the company to broaden its EV portfolio beyond electric cars to include electric buses, electric scooters, and charging infrastructure.
This marks the second phase of VinFast’s $2 billion investment in India, with $500 million allocated for new workshops and production lines for electric buses and e-scooters.
The upgraded facility will handle manufacturing, assembly, and testing operations, significantly enhancing VinFast’s preparation for localisation and production in India’s fast-growing EV market.
As per the MoU, the Tamil Nadu government will assist VinFast with permits, utilities like electricity and water, internal roads, drainage, and waste management, along with applicable incentives and legal exemptions under existing policies to support the $500 million investment.
Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, said:
"The proposed expansion of our Tamil Nadu plant will allow us to expand our product lineup in India from electric cars to electric buses and e-scooters, better serving customer needs. We also expect this initiative to create new job opportunities, promote localisation, and strengthen the skills of the local workforce."
He further added:
"VinFast believes Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and play a key role in supporting India’s green mobility goals in the coming years."
T.R.B. Raja, Industries Minister of Tamil Nadu, stated:
"We welcome the next phase of VinFast’s planned EV development in Tamil Nadu. The launch of electric bus and e-scooter production will accelerate the state’s and India’s green transportation strategy."
Raja also emphasized that the government is committed to ensuring smooth implementation, providing long-term benefits to local communities and the regional economy, and fostering job creation through VinFast’s growing ecosystem in Tamil Nadu.
The existing Thoothukudi plant spans 400 acres (160 hectares) and features international-standard production lines.
Current annual capacity is 50,000 electric vehicles, with plans to scale up to 150,000 units.
The expanded facility is expected to strengthen VinFast’s EV ecosystem in India, covering manufacturing, distribution, charging infrastructure, after-sales, and battery recycling.