VinFast to Invest ₹4,000 Cr in Tamil Nadu for E-Bus, Two-Wheeler Production

VinFast has announced plans to significantly expand its manufacturing presence in Tamil Nadu through a new Memorandum of Understanding with the state government. The agreement will allocate approximately 200 hectares of additional land adjacent to the company's existing facility in the SIPCOT Industrial Park in Thoothukudi.

The expansion represents the second phase of VinFast's USD 2 billion commitment to India and will see the company invest USD 500 million to establish dedicated production lines for electric buses and e-scooters. The new facilities will cover manufacturing, assembly, testing, and related operations for these vehicle categories.

Under the agreement, the Tamil Nadu government will provide support in securing necessary permits and establishing infrastructure connections including electricity, water, road access, drainage, and waste management systems. The state will also apply applicable incentives, financial support measures, and statutory exemptions according to existing regulations.

VinFast's current Thoothukudi facility spans 160 hectares and features internationally standardized production lines with an initial annual capacity of 50,000 electric vehicles. The company is currently expanding this capacity to 150,000 units.

Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated that the expansion would enable the company to broaden its product lineup in India and meet a wider range of customer needs. He emphasized that the initiative is expected to create new employment opportunities, advance localization, and strengthen workforce skills in the region.

Dr. T.R.B. Rajaa, Tamil Nadu's Minister of Industries, welcomed the development, noting that the introduction of electric bus and e-scooter production would generate additional momentum for green transportation strategies at both state and national levels.

Since entering the Indian market, VinFast has been developing a comprehensive EV ecosystem encompassing manufacturing, distribution, charging infrastructure, aftersales services, and battery recycling. The company currently operates 24 dealerships in major Indian cities and aims to reach 35 by year-end.

VinFast, a subsidiary of Vietnamese conglomerate Vingroup JSC and listed on NASDAQ under the ticker VFS, manufactures a range of electric SUVs, e-scooters, and e-buses. The company is pursuing global expansion with a focus on key markets across North America, Europe, the Middle East, and Asia.