VinFast is making a significant stride in India. The company has entered into a new agreement with the Tamil Nadu government for expansion of its facility in Thoothukudi. This move will see electric buses and electric scooters coming into production, as well as a much stronger local manufacturing base. For Tamil Nadu, it’s one more step towards clean and sustainable mobility.
The company will acquire around 200 hectares (around 500 acres) of land next to the existing unit of the company within the SIPCOT Industrial Park. This is part of the second phase of VinFast’s USD 2 billion commitment to India. Out of this, USD 500 million (about Rs 4,000 crore) has now been allocated for new production lines.
What the expansion includes
- New workshops and assembly lines for electric buses
- Dedicated production to electric scooters
- Facilities for manufacture, testing and support operations
- Better infrastructure support such as electricity, water supply, internal roads, drainage and waste systems
- Fast-tracked permits, state incentives
The current Thoothukudi plant already takes up 160 hectares (400 acres). It has globally standardized equipment and currently makes 50,000 EVs a year. VinFast is currently working to expand this to 150,000 units per year.
The Reason Behind VinFast’s New Move
Pham Sanh Chau, VinGroup Asia CEO VinFast Asia CEO said the expansion will help the company to bring more products to India — from electric cars to buses and e-scooters. He also shared that the project will create job, increase localization and develop skills in the region. Tamil Nadu, he said, will continue to be a major destination for VinFast’s global ambitions.
Tamil Nadu’s Industries Minister, Dr. T.R.B. Rajaa, welcomed the move saying that with the addition of electric buses and scooters, the state and the country can achieve green mobility goals. He assured of full cooperation during the implementation process.
VinFast’s increasing presence in India
The company is developing a full EV ecosystem here. This comprises manufacturing, retail, charging, after-sales service and battery recycling. VinFast already has 24 dealerships in major cities and expects to have 35 by the end of the year.
Conclusion
This expansion is a clear statement of VinFast’s long-term commitment to India. It brings in new jobs, better local manufacturing and more clean mobility options for the country. With Tamil Nadu supporting the project, the state will become one of the key EV hubs in the region.