This milestone provides an opportunity for VinFast to broaden its product portfolio from electric cars to electric buses, e-scooters and charging infrastructure, while reaffirming the company’s long-term commitment to the world’s third largest automotive market.
Under the MoU, the government of Tamil Nadu will allocate approximately 200 hectares of land adjacent to VinFast’s existing facility in Thoothukudi. 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.
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Pham Sanh Chau (left), Vingroup Asia CEO and VinFast Asia CEO, and Prabakaran Andi Saravanan, Associate Vice President at Guidance Tamil Nadu, at the MoU signing ceremony (Photo: vingroup.net) |
As the second phase of its existing 2 billion USD commitment, VinFast will invest 500 million USD in Thoothukudi to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations.
For VinFast’s proposed 500 million USD investment, the government of Tamil Nadu will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the state’s prevailing regulations and relevant policies.
With the signing of this MoU, VinFast takes another step forward in strengthening its manufacturing readiness in the Indian market. The initiative is also expected to increase supply chain localization, create additional employment opportunities, and support workforce skill development in the region.
The existing Thoothukudi facility covers 160 hectares and is equipped with internationally standardized production lines. It has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated that the proposed expansion of the Tamil Nadu plant will enable VinFast to broaden its product lineup in India, from electric cars to electric buses and e-scooters, allowing it to meet a wider range of customer needs.
He noted the company also expects this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce. It believes that Tamil Nadu will continue to serve as a strategic hub in its 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 they welcome VinFast’s next phase of planned development of electric cars in Tamil Nadu, and that 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 favorable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy, he added.
Since entering the Indian market, VinFast has continuously expanded its comprehensive electric vehicle ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services and battery recycling. 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.
Source: VNA