Vietnamese automaker VinFast has announced its plans to invest $2 billion in setting up an electric vehicle (EV) plant in Tamil Nadu, India. This strategic move aims to establish a strong foothold in the Indian market and position VinFast as a key player in the global EV industry.
In a media release, VinFast revealed that it has signed a memorandum of understanding (MoU) with the Tamil Nadu government for the establishment of the EV facility in Thoothukudi. The company intends to commit $500 million for the first phase of the project, which will span five years from the commencement date.
The EV Maker’s investment in India signifies a significant step towards expanding its presence in the world’s third-largest vehicle market. Reports suggest that the Vietnamese automaker will not only set up its EV manufacturing facility in Tamil Nadu but also establish an in-house battery manufacturing unit. This move indicates VinFast’s plan to designate the Indian facility as its global EV manufacturing hub.
VinFast inks Landmark MoU with Tamil Nadu Government
The construction of the EV and battery manufacturing plants is expected to commence this year, creating an estimated 3,000 to 3,500 job opportunities locally. The EV Maker aims to develop its Indian EV project into a first-class EV production hub in the region, with an annual capacity of up to 150,000 vehicles. However, the capacity of the battery facility has not been specified.
Tran Mai Hoa, Deputy CEO of Sales and Marketing at VinFast Global, expressed the company’s commitment to sustainable development and a zero-emission transportation future. VinFast believes that investing in Tamil Nadu will not only bring economic benefits but also accelerate the green energy transition in India and the region.
Initially, the EV Maker will import its electric sports utility vehicles (e-SUVs) as completely built units (CBUs). Later, the company plans to import completely knocked-down (CKD) kits of its cars to be assembled in India. VinFast also aims to launch an India-specific mini battery-operated SUV in the future.
VinFast’s investment in Tamil Nadu is expected to foster mutual economic growth and strengthen the comprehensive strategic partnership between Vietnam and India. TRB Rajaa, Minister of Industries of the Government of Tamil Nadu, expressed confidence in the EV Manufacturing Firm’s capabilities and commitment to a sustainable future, highlighting the company’s potential as a reliable economic partner and contributor to Tamil Nadu’s long-term development.
In addition to the manufacturing facilities, the EV Maker plans to establish a nationwide dealership network in India, further expanding its presence in the country’s automotive market.
The Electric Vehicles Makers investment in Tamil Nadu marks a significant milestone in the company’s global expansion strategy. With its focus on sustainable transportation and cutting-edge EV technology, the Vietnam EV Firm is poised to make a lasting impact on India’s automotive industry while contributing to the country’s green energy transition.
This investment decision in Tamil Nadu leads to mutual economic growth for both VinFast and the state, while also strengthening the Comprehensive Strategic Partnership between Vietnam and India.
In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country.
As Vietnam’s leading electric vehicle manufacturer with global aspirations, VinFast’s relentless dedication to innovation and research propels the Company towards its goal of being a global leader in the electric vehicle industry and its commitment to a sustainable future for all.
The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market. This initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.
