Scaling up operations in India, VinFast strengthens its Tamil Nadu facility to produce electric two wheelers and buses, boosting the local EV ecosystem.
VinFast has signed a memorandum of understanding with the Tamil Nadu government to expand its existing facility in Thoothukudi for the production of electric buses and escooters. The state will allocate approximately 500 acres of land in the Sipcot Industrial Park to support the expansion, marking a second-phase investment of roughly $500 million. This comes on top of the company’s initial 500 million dollar investment and is part of a cumulative $2 billion commitment in India.
The expansion will include new workshops and production lines covering manufacturing, assembly, testing, and related operations. Tamil Nadu will provide financial incentives, statutory exemptions, and support in securing permits, as well as establishing essential infrastructure such as electricity, water, internal road access, drainage, and waste management.
Pham Sanh Chau, CEO of Vingroup Asia, said the expansion will allow VinFast to broaden its product portfolio in India from electric cars to electric buses and escooters, while creating employment opportunities, advancing localisation, and strengthening workforce skills. The existing 400-acre Thoothukudi facility, which meets international production standards, currently has an annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
Tamil Nadu Industries Minister TRB Rajaa welcomed the initiative, emphasizing its role in supporting green transportation goals and generating jobs. Since entering India, VinFast has steadily built a comprehensive EV ecosystem including manufacturing, distribution, charging infrastructure, after-sales services, and battery recycling. The company also plans to expand its dealer network from 24 to 35 locations by the end of the year, reinforcing its commitment to India’s electric mobility market.
