Vietnamese electric vehicle manufacturer VinFast has significantly bolstered its commitment to the Indian market by signing a crucial agreement with the Tamil Nadu government. This move paves the way for a major second-phase investment aimed at diversifying its product portfolio within the country.
A Strategic Expansion in Thoothukudi
The company has entered into a Memorandum of Understanding (MoU) with the state, securing access to an additional 200 hectares of land in the SIPCOT Industrial Park near its existing facility in Thoothukudi. This fresh allocation is part of a new $500 million investment, which forms the second stage of VinFast's broader $2 billion master plan for the region.
The upcoming phase will focus exclusively on establishing dedicated manufacturing, assembly, and testing facilities for electric buses and electric two-wheelers. In exchange, the Tamil Nadu government has pledged full support through necessary approvals, provision of essential infrastructure like power, water, and roads, and a package of incentives to facilitate the project.
Broadening the EV Portfolio and Local Impact
VinFast's current operations in Tamil Nadu span 160 hectares, where it manufactures electric cars with an annual capacity of 50,000 units. This capacity is being scaled up to 150,000 vehicles per year. The new development will integrate production lines for e-buses and e-scooters alongside the existing car plant, creating a comprehensive EV manufacturing hub.
Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, stated that the expansion will allow the company to meet a wider range of customer needs in India. He emphasized expectations for new job creation, advancement in localization, and skill development for the local workforce. He reaffirmed Tamil Nadu's role as a strategic global hub supporting India's green mobility objectives.
T. R. B. Rajaa, Tamil Nadu's Minister of Industries, welcomed the move, stating it adds momentum to the green transportation strategies of both the state and the nation. The government is committed to ensuring favourable conditions for VinFast's success, aiming to deliver lasting benefits for the community and regional economy.
VinFast's Current Footprint in the Indian Market
Presently, VinFast sells two electric SUV models in India: the VF6 and the VF7. The VF6 starts at Rs 16.49 lakh (ex-showroom) and is equipped with a 59.6kWh battery, offering a WLTP range of up to 480km and 204hp. The VF7, priced from Rs 20.89 lakh (ex-showroom), uses a 70.8kWh battery and is available in both front-wheel-drive and all-wheel-drive variants, with the AWD version producing a combined 350hp.
This substantial investment underscores the intensifying competition in India's electric vehicle sector and highlights Tamil Nadu's growing prominence as a preferred destination for advanced manufacturing and clean technology investments.
