VinFast To Set Up EV Plant In Tamil Nadu With An Initial Investment Of Over Rs 4,000 Crore

VinFast has partnered with the Tamil Nadu State Government to boost green transportation in India. Under a Memorandum of Understanding (MoU), both entities plan to invest up to USD 2 billion (Rs 16,638 crore approx), with an initial commitment of USD 500 million (Rs 4,160 crore approx) for the first phase over five years. The integrated electric vehicle facility, located in Thoothukudi, Tamil Nadu, is expected to create 3,000-3,500 job opportunities locally.

With an annual capacity of 150,000 units, the project aims to establish itself as a premier electric vehicle production hub in the region, commencing construction in 2024. Beyond the economic advantages, the initiative seeks to contribute to green transportation by targeting 30 per cent of new private car registrations to be electric, aligning with the state government's emission reduction goals. Moreover, this marks VinFast's third manufacturing project and the largest investment in Tamil Nadu to date.

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Recognising the project's substantial impact, the Tamil Nadu government has committed to provide essential support, including cleared land for manufacturing facilities, consistent power supply, and other infrastructure needs. The collaboration also involves discussions about potential charging stations to promote clean mobility.

VinFast further aims to establish a nationwide dealership network, enhancing its presence in the Indian electric vehicle market.