VinFast Auto Ltd, the Vietnamese electric vehicle manufacturer, has launched plans to establish an integrated electric vehicle (EV) facility in Tamil Nadu, India, as part of its strategy to enter the world’s third-largest automobile market. The company has expressed its plans to invest a substantial $2 billion in the state, with an initial investment of $500 million earmarked for the first phase of the project, spanning a five-year period from the commencement date. The construction of the facility is set to commence this year, with the project targeting an annual production capacity of up to 150,000 units.
VinFast is aimed to set up both an EV car and battery manufacturing facility in Tuticorin, making a substantial investment of ₹16,000 crore. This strategic investment has been hailed by Tamil Nadu Chief Minister MK Stalin as a transformative leap for economic growth in South Tamil Nadu. The Chief Minister, in a social media post, emphasized, “VinFast would set up an EV car and battery manufacturing facility in Tuticorin at an investment of ₹16,000 crore. This is not just a mere investment. It is a giant leap for economic growth in South Tamil Nadu.”
The Memorandum of Understanding (MoU) between VinFast and the Tamil Nadu government reflects the automaker’s contributions to sustainable development and its vision for a zero-emission transportation future. As reported in a reputed news source, VinFast Global Deputy CEO Sales and Marketing, Tran Mai Hoa, has highlighted the significance of the investment, stating, “We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties but will also help accelerate the green energy transition in India and the region.”
The state government has reciprocated this plan by ensuring key support for the project, including providing cleared land for the manufacturing facilities, uninterrupted power supply, and other necessary infrastructure support. Minister for Industries T R B Rajaa expressed his enthusiasm for this development, stating, “Fantastic news for the South. Global EV giant VinFast has confirmed entry into India via TN. Beating expectations and speculations, VinFast will be setting up both its EV car and battery manufacturing plant in Tuticorin with an overall investment of USD 2 billion (over ₹16,000 crore).” He expressed gratitude to VinFast for choosing Tamil Nadu and affirmed that the state is well-prepared to support the infrastructure and talent pool necessary for the success of the integrated EV facility.
This strategic move by VinFast not only signifies its global expansion plans but also aligns with India’s push toward green and sustainable mobility solutions. The investment is expected to create employment opportunities, foster economic growth, and contribute to the realization of a greener and more sustainable automotive industry in the region.
