VinFast India expands Tamil Nadu plant with new $500 million investment for EVs

VinFast India has announced a major expansion of its manufacturing footprint, having signed a new Memorandum of Understanding (MoU) with the Government of Tamil Nadu to extend its Thoothukudi facility. The latest agreement will allocate approximately 200 hectares (around 500 acres) of additional land within the SIPCOT Industrial Park, enabling the Vietnamese EV maker to scale its portfolio beyond electric cars into electric buses, electric scooters and charging infrastructure.

This marks the second phase of VinFast’s $2 billion investment in India, wherein the company will invest $500 million to set up new workshops and production lines for electric buses and e-scooters. These facilities will cover manufacturing, assembly and testing operations and are expected to significantly boost the brand’s localisation and manufacturing readiness in India’s fast-growing EV market.

Under the MoU, the Tamil Nadu government will support VinFast in securing necessary permits and developing essential infrastructure, including electricity, water supply, internal roads, drainage and waste management. The state will also extend applicable incentives and statutory exemptions as per existing policies to support the proposed $500 million investment.

Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said, “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to 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."

Tamil Nadu’s Minister of Industries, T.R.B. Rajaa, added, “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 its flourishing ecosystem provides jobs for Tamil Nadu."

VinFast's existing Thoothukudi plant spans 400 acres (160 hectares) and features international-standard production lines with an annual capacity of 50,000 electric vehicles, which is currently being expanded to 150,000 units. The expanded facility is expected to play a key role in strengthening the company’s EV ecosystem in India, one that includes manufacturing, distribution, charging infrastructure, aftersales and battery recycling.

VinFast is additionally expanding its retail presence. The company already has 24 dealers operating in major cities across India and aims to take the tally to 35 by the end of the year, further cementing its long-term commitment to the Indian EV market.

Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.