VinFast to Expand Tamil Nadu EV Plant for Buses & Two-Wheelers

Hanoi, Vietnam- VinFast Auto Ltd., has signed a new Memorandum of Understanding (MoU) with the Government of Tamil Nadu to expand its manufacturing footprint in the state. Under this agreement, roughly 200 hectares (about 500 acres) of land will be allocated in the SIPCOT Industrial Park at Thoothukudi, adjacent to VinFast’s existing facility. The expansion will allow the company to move beyond electric cars and into the production of electric buses, electric two-wheelers (e-scooters) and related charging infrastructure, reinforcing VinFast’s long-term commitment to India, the world’s third-largest automotive market.

As part of the MoU, the state government will provide the required land parcel next to VinFast’s current site in Thoothukudi and support the company in obtaining necessary clearances. Tamil Nadu will also assist in establishing key infrastructure links, including electricity and water connections, internal road access, drainage systems and waste management facilities.

This initiative represents the second phase of VinFast’s previously announced USD 2 billion investment in India. In this phase, the company plans to invest an additional USD 500 million in Thoothukudi to set up dedicated workshops and production lines for electric buses and e-scooters. These facilities will cover manufacturing, assembly, testing and other associated operations.

For this proposed USD 500 million investment, the Government of Tamil Nadu has committed to extending all eligible incentives, financial support measures and statutory exemptions available under the state’s current regulations and relevant policies.

The expanded footprint is expected to further strengthen VinFast’s manufacturing readiness in India. It will also help deepen localization of the supply chain, generate new employment opportunities and support skills development for the local workforce in and around Thoothukudi.

VinFast’s existing facility in Thoothukudi spans around 400 acres (160 hectares) and is equipped with globally benchmarked production lines. The plant currently has an initial annual capacity of 50,000 electric vehicles, which is being scaled up to 150,000 units.

Mr. Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said, “The planned expansion of our Tamil Nadu plant will enable us to serve a broader spectrum of Indian customers, from electric cars to buses and e-scooters. We anticipate that this project will help create new jobs, enhance localization and upgrade the capabilities of the local workforce. VinFast sees Tamil Nadu as a strategic base in our global growth roadmap and believes the state will play a pivotal role in advancing India’s green mobility ambitions in the coming years.”

Dr. T.R.B. Rajaa, Minister for Industries, Government of Tamil Nadu, said, “We welcome VinFast’s next phase of investment in electric car manufacturing in Tamil Nadu, and are pleased that they are now adding electric bus and e-scooter production. This will further accelerate the green transport agenda of both Tamil Nadu and India. The state government is committed to working closely with VinFast, ensuring a supportive environment throughout implementation so that Vingroup prospers in Tamil Nadu and its growing ecosystem generates sustainable employment for our people.”

Since entering India, VinFast has been steadily building a comprehensive EV ecosystem in the country, covering manufacturing, distribution, charging infrastructure, service and battery recycling, with the Tamil Nadu plant serving as a cornerstone of this strategy. Its retail and distribution network is also expanding rapidly, with 24 dealers already operational across key cities and a target of reaching 35 by the end of the year.

Guided by a focus on innovation, sustainability and customer-centric design, VinFast remains committed to enabling India’s transition to clean mobility solutions and contributing to a more sustainable and inclusive automotive future.

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