VinFast Intends to Invest $2 billion with EV Production in Tamil Nadu

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VinFast, an EV manufacturer based in Vietnam, has announced plans to construct a “integrated EV facility” in Tamil Nadu. In order to establish a manufacturing facility in Thoothukudi, the firm and the state government recently signed a Memorandum of Understanding (MoU).

VinFast has committed US$500 million for the project’s initial phase and will invest up to US$2 billion in the Indian unit over a five-year period.

In 2024, work on the new facility will get underway. After construction is finished, the factory will be able to produce 1,50,000 units annually. It is anticipated to create between 3,500 and 3,000 jobs.VinFast also intends to establish a network of dealerships throughout India.

The VF e-34 crossover is the first of two or three electric SUVs that the Tesla rival EV manufacturer plans to release. Most likely, the CBU route will be used for importation. The business intends to export its electric SUVs, the VF6 and VF7, to India.

VinFast, which was founded in 2017 and has been producing EVs since 2021, has made multiple plans for EV expansion abroad. August 2023 marked the company’s Nasdaq debut, and a month later, it announced its plans to expand into India.

Several EV companies are based in Tamil Nadu’s capital city of Chennai, which has been dubbed the Detroit of Asia. These companies include China’s BYD and Indian two-wheeler manufacturers Ola Electric and Ather.

According to VinFast, the Tamil Nadu project is anticipated to develop into a premier EV production hub in the area, capable of producing up to 150,000 vehicles annually, as opposed to the 250,000 vehicles produced at its main plant in Vietnam. The battery facility’s capacity was not stated in the joint statement.

Just 2% of cars sold in India last year were electric models, but the country’s government wants that number to rise to 30% by 2030 and is developing a program to entice EV manufacturers.

According to the statement, the Tamil Nadu government promised to provide cleared land for the manufacturing facilities, a steady supply of electricity, and other infrastructure support.

VinFast revealed that its national dealership network is also in the works.

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