VinFast to invest $500 million to expand its TN facility; to scale e-buses and e-scooter manufacturing

Vietnam’s pure-play EV maker, VinFast and the Government of Tamil Nadu signed a Memorandum of Understanding (MoU) to allocate approximately 200 hectares of land in the SIPCOT Industrial Park in Thoothukudi to support the development of the company’s existing facility.

This move would help VinFast to broaden its product portfolio from electric cars to electric buses, e-scooters and charging infrastructure. The state will also provide support in securing required permits and in establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management.

As the second phase of its existing $2 billion commitment, VinFast will 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 Tamil Nadu government will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the State’s prevailing regulations and relevant policies.

The initiative is also expected to increase supply chain localisation, create additional employment opportunities, and support workforce skill development in the region.

The existing Thoothukudi facility covers 160 hectare 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. The company’s distribution network has a presence of 24 dealers already operating in major cities and a target of reaching 35 by the end of the year.

Speaking on the MoU, Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated that this initiative would 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.”

Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu said, “We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India. 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 their flourishing ecosystem provides jobs for Tamil Nadu.”