Vietnamese EV maker to invest $500 million into setting up a 1.5 lakh unit capacity plant in the first phase of five years.
VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, and the Tamil Nadu State Government on Saturday announced a Memorandum of Understanding (MoU) to invest USD 2 billion (around Rs 16,600 crore) to manufacture and export vehicles from India.
VinFast and the state government will work towards a total investment of up to USD 2 billion, with an intended commitment of USD 500 million (around Rs 425 crore) for the first phase of the project spanning five years from the commencement date, said VinFast’s statement.
- New plant construction expected to begin this year itself
- Will generate 3,000-3,500 new job opportunities
- VinFast’s investment is the largest in Tamil Nadu’s history
This move is a significant step in VinFast’s global expansion, which offers the brand a foot into the world’s third-largest car market. “The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market,” added the statement.
The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is anticipated to generate employment to approximately 3,000-3,500 people locally. Situated in Thoothukudi, the VinFast Tamil Nadu project aims to evolve into a electric vehicle production hub in the region, with an annual capacity of up to 150,000 units.
The construction of the plant is anticipated to begin in 2024, and is set forth to lay a strong foundation for economic growth in Tamil Nadu and India as a whole, claims the company. The company will also be setting up a nationwide dealership network to establish a strong brand presence and swiftly connect with customers across the country.
Besides the economic benefits, the project will also pave the way for green transportation development, targeting 30 percent of newly registered private cars to be electric. This aligns with the state government’s initiatives to minimise carbon emissions in the transportation sector.
Dr TRB Rajaa, minister of Industries Investment Promotions and Commerce of the Government of Tamil Nadu, with VinFast’s top management.
Ms Tran Mai Hoa, deputy CEO of Sales and Marketing, VinFast Global shared, “The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emissions 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.”
TRB Rajaa, minister of Industries of 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. Possessing robust capabilities and unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development.”
VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history, the press statement noted. The Government of Tamil Nadu has committed to providing cleared land for the manufacturing facilities, uninterrupted power supply and other infrastructure support on a best-effort basis.
Additionally, both parties will continue to collaborate and discuss opportunities for charging stations to steer towards a clean mobility future. VinFast – a member of Vingroup – envisions driving the advancement of the global smart electric vehicle revolution.