VinFast has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government to expand its manufacturing operations in Thoothukudi, a coastal city renowned for its ports and industrial potential.
VinFast will receive 200 hectares of land which is about 500 acres in the SIPCOT Industrial Park, right next to its existing plant. This piece of land will be used to expand its factory and build dedicated production lines for electric buses and electric two-wheelers like e-scooters.
This expansion is part of a $500 million investment, which itself is the second phase of VinFast’s larger $2 billion commitment to India. The company is going all-in on India’s growing EV market. More electric buses means cleaner public transport in the future, more electric scooters means perfect for daily city rides, low running cost and eco-friendly commutes, more jobs, more skill development and boost to local economy.
The existing VinFast plant already covers 400 acres and can produce 50,000 electric vehicles a year, but with this expansion, the capacity will rise to 1,50,000 units annually. Tamil Nadu will also help VinFast by providing essential infrastructure such as power connections, water, internal roads, drainage and waste management systems.
Pham Sanh Chau, VinFast Asia CEO, said that this expansion will help the company offer a wider range of EVs in India-including electric cars, buses, and scooters. He believes Tamil Nadu will continue to be a key hub for VinFast’s global journey and will support India’s shift towards green mobility.
The Tamil Nadu Government also expressed strong support. Dr. T.R.B. Rajaa, Minister of Industries, said the state is committed to helping VinFast succeed because the project aligns with India’s and Tamil Nadu’s goals for cleaner, greener transport.
Even though the company entered India recently, VinFast has already built a complete EV ecosystem which is manufacturing, sales, charging stations, after-sales service and even battery recycling. They currently have 24 dealers in major cities and aim to reach 35 dealerships by year-end.