Vietnamese electric vehicle manufacturer VinFast has entered into a memorandum of understanding with the state government of Tamil Nadu to build electric vehicle manufacturing facilities in India as the auto maker seeks to break into the world’s third largest vehicle market.
The partnership has earmarked an investment of up to US$2bn with an initial commitment for the first phase of the project, spanning five years, set at US$500m.
The collaboration will see VinFast establish an integrated electric vehicle facility in Thoothukudi, Tamil Nadu, with an annual production capacity of up to 150,000 units. The project is expected to create 3,000-3,500 job opportunities, contributing to economic growth in the region and the country at large.
Construction of the manufacturing plant is scheduled to commence this year. The project seeks to promote green transportation and capitalize on the growing EV market in the country, which is aiming for 30% of newly registered private cars to be electric by 2030.
The Tamil Nadu state government has committed to providing necessary support, including cleared land for manufacturing facilities, uninterrupted power supply, and other infrastructure support. Both parties will continue to collaborate on opportunities, including the establishment of charging stations, to advance the vision of a cleaner, more sustainable mobility future.
Tran Mai Hoa, deputy CEO of sales and marketing at VinFast Global, said, “The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emission transportation future. 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.”
Dr TRB Rajaa, minister of industries at the Government of Tamil Nadu, said, “EV manufacturing companies are not only important economic drivers but also powerful accelerators to the state’s green vision. We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility.”