VinFast has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to expand its existing manufacturing hub in the SIPCOT Industrial Park, Thoothukudi. As part of the agreement, the state will allocate around 200 hectares (500 acres) of land adjacent to the current facility, enabling the company to diversify its portfolio beyond electric cars to include electric buses, e-scooters, and charging infrastructure.
The government will support VinFast by facilitating required permits and providing essential infrastructure such as power, water, internal roads, drainage, and waste management systems.
As part of the second phase of its USD 2 billion commitment, VinFast will invest USD 500 million to set up new workshops and production lines dedicated to electric bus and e-scooter manufacturing, assembly, testing, and related operations. The Tamil Nadu government will extend all eligible incentives, financial benefits and regulatory exemptions as per existing state policies to support this investment.
With the signing of this MOU, VinFast takes another step forward in strengthening its manufacturing readiness in the Indian market. The initiative is also expected to increase supply chain localization, create additional employment opportunities, and support workforce skill development in the region.
The existing Thoothukudi facility covers 400 acres (160 hectares) and is equipped with internationally standardized production lines. It has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
Mr. Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated: “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce. VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”
Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu said: “We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and ensuring favorable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing ecosystem provides jobs for Tamil Nadu”.
Since entering the Indian market, VinFast has continuously expanded its comprehensive EV ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services and battery recycling, with the Tamil Nadu plant being an important part of this ecosystem. At the same time, the company’s distribution network is rapidly growing, with 24 dealers already operating in major cities and a target of reaching 35 by the end of the year.
With a consistent focus on innovation, sustainability and customer-centric design, VinFast is committed to supporting India’s transition toward environmentally friendly mobility solutions and contributing to a greener and more inclusive automotive future.
