Vinfast announced the expansion of its Tamil Nadu factory, aiming to produce buses and electric motorbikes in India.

VinFast and the Government of Tamil Nadu have officially signed a Memorandum of Understanding (MOU) on allocating approximately 200 hectares of land at SIPCOT Industrial Park, Thoothukudi City, to expand the company’s existing facilities. The agreement opens up opportunities for VinFast to diversify its product portfolio, from electric cars, electric buses, electric scooters to charging station infrastructure, while reaffirming its long-term commitment to the world’s third-largest automobile market.

Under the MOU, the Tamil Nadu government will allocate to VinFast approximately 500 acres, or 200 hectares, of land adjacent to the existing facility in Thoothukudi. The state will also assist in obtaining permits and setting up essential infrastructure connections such as electricity, water, internal roads, drainage and waste treatment systems.

VinFast, on its part, plans to invest $500 million in Thoothukudi to develop specialized workshops and production lines for electric buses and electric motorbikes, including related manufacturing, assembly, testing and operations. This investment marks the second phase of its previous $2 billion investment commitment.

For the proposed investment of USD 500 million by VinFast, the Government of Tamil Nadu will apply full incentives, financial support and exemptions as per the existing regulations and relevant policies of the State.

With the signing of the MOU with the Government of Tamil Nadu, VinFast takes a step forward in strengthening its manufacturing capacity in the Indian market. This initiative is also expected to promote localization of the supply chain, create more employment opportunities and support skill upgradation for the workforce in the region.

Mr. Pham Sanh Chau (left), CEO of Vingroup Asia and Mr. Prabakaran Andi Saravanan, Deputy Director of the Tamil Nadu State Investment Department at the signing ceremony.

VinFast’s current facility at Thoothukudi is spread over 160 hectares and is equipped with an international-standard production line. The factory has an initial design capacity of 50,000 electric cars per year and is being expanded to 150,000 cars per year.

Mr. Pham Sanh Chau, CEO of Vingroup Asia and CEO of VinFast Asia, said: “ The proposed expansion of the Tamil Nadu factory will help us expand our product range in India, from electric cars to electric buses and electric two-wheelers, thereby meeting the diverse needs of users. We expect this initiative to create new job opportunities, promote localization and improve the skills of the local workforce. VinFast believes that Tamil Nadu will continue to play a strategic role in the company's global expansion journey and will contribute significantly to India's goal of promoting green transportation in the coming time.”

Dr. TRB Rajaa, Industries Minister of Tamil Nadu, said: “We welcome the next phase of VinFast’s development in Tamil Nadu. The continued push for electric vehicles, along with the launch of new electric buses and electric scooters, will add momentum to the green transport strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and facilitating the implementation process to bring sustainable benefits to the community and the regional economy , while supporting Vingroup’s strong growth in Tamil Nadu. Through this, the Group’s expanding ecosystem will create more jobs for the people of Tamil Nadu.”

Since its presence in India, VinFast has been steadily expanding its comprehensive electric vehicle ecosystem, including manufacturing, distribution, charging infrastructure, after-sales services and recycling, with the Tamil Nadu plant being a key part of this ecosystem. At the same time, the company’s distribution network has also grown rapidly, with 24 dealerships already operating in major cities and plans to reach 35 dealerships by the end of this year.

With the orientation of innovation, sustainable development and customer-centricity, VinFast commits to continue accompanying India in the process of transitioning to environmentally friendly means of transport, contributing to building a greener and more comprehensive future for the automobile industry in this country./.

Vietnam.vn