VinFast’s $2 billion factory to come up in Tamil Nadu, to manufacture 150,000 units a year

VinFast’s $2 billion factory to come up in Tamil Nadu, to manufacture 150,000 units a year

Vietnam’sleadingelectric vehicle (EV)manufacturer VinFast has signed an MoU with the Tamil Nadu State government with an investment ofup to$2 billion (Rs 16,662 crore), with anintended commitmentof $500 million (Rs 4,165 crore) for the first phase of theProject, spanning 5-years from the commencement date.

It was in September 2023, Financial Express Online had reported the company’s plans to enter the India market to explore new growth opportunities.

The integrated electric vehicle facility in Tamil Nadu is anticipated to generate approximately 3,000 – 3,500 employment opportunities locally.

The factory will come up in Thoothukudi, Tamil Nadu, which will have an annual capacity of up to 150,000 units. The construction of the plant is anticipated to begin in 2024.

Tran Mai Hoa, Deputy CEO of Sales and Marketing,VinFastGlobalsaid, “TheMoU demonstratesVinFast’s strong commitment tothesustainable development and vision of a zero-emission transportationfuture. We believe that investing in Tamil Nadu will not only bringconsiderableeconomic benefits to both parties, but will also help accelerate the green energy transition in India and the region.”

Thallikotai Raju Balu Rajaa, Ministerof Industriesof theGovernment of Tamil Nadu,said: “EVmanufacturingcompaniesare not only important economic drivers but alsopowerful acceleratorstotheState’s green vision. We are delighted that VinFast has chosen to invest in Tamil Nadu to establish itsintegrated EV facility.Possessingrobust capabilities and unwavering commitment to a sustainable future, I believe that VinFastwillemerge as a reliable economic partnerand substantial contributor toTamil Nadu’slong-termdevelopment.”

It is said that VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. Additionally, the company and the State will continue to collaborate and discuss opportunities for charging stations to steer toward a clean mobility future.

In addition to building the manufacturing facilities in Tamil Nadu, VinFast says it also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country.