In a significant move, Vietnamese automaker VinFast announced its plans to invest $2 billion in establishing an electric vehicle (EV) plant in Tamil Nadu, signaling a strategic entry into the Indian market. The company has signed a memorandum of understanding (MoU) with the Tamil Nadu government for the EV facility in Thoothukudi.
VinFast and the state government aim for a total investment of up to $2 billion, with an initial commitment of $500 million for the project’s first phase spanning five years. This move marks a substantial step in VinFast’s expansion into the world’s third-largest vehicle market.
The construction of the EV and battery manufacturing plants is set to commence this year, generating an estimated 3,000 to 3,500 jobs locally. VinFast anticipates its Indian EV project evolving into a first-class production hub with an annual capacity of up to 150,000 vehicles. However, the capacity of the battery facility has not been specified.
VinFast plans to import its electric sports utility vehicles (e-SUVs) initially as completely built units (CBUs) and later import completely knocked down (CKD) kits for assembly in India. The investment in Tamil Nadu is seen as a move towards mutual economic growth and strengthens the Comprehensive Strategic Partnership between Vietnam and India.
Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global, stated, “We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties but will also help accelerate the green energy transition in India and the region.”
The investment decision aligns with VinFast’s commitment to a sustainable future and envisions a zero-emission transportation future. The company also plans to establish a nationwide dealership network in India, bringing its VF6, VF7, VF8, and VF9 electric SUVs to the market, with the eventual launch of an India-specific mini battery-operated SUV.
