The VinFast logo.
Chennai: Vietnamese electric vehicle manufacturer VinFast on Thursday announced plans to expand its greenfield facility in Thoothukudi to broaden its product portfolio from electric cars to electric buses and e-scooters. The company will be allotted an additional 500 acres of land adjacent to its existing facility at the state-owned SIPCOT industrial park in the port city.
The company, which opened its manufacturing facility within 18 months of making the announcement, said it will invest $500 million to develop dedicated workshops and production lines for new product portfolios, covering manufacturing, assembly, testing and other related operations.
The said investment is part of the $2 billion commitment that the company made in January 2024 at the third Global Investors’ Meet here.
On August 4, this year, VinFast rolled out its first car from the factory. It now plans to bring its suppliers to the region to foster an ecosystem.
A statement from VinFast said the state government will also provide support in securing required permits and establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management.
“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,” Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said.
He added that the company expects the initiative to create new jobs, advance localisation 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,” he added.
Tamil Nadu Industries Minister TRB Rajaa said VinFast’s expansion plans 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 favourable 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 the state,” he added.
VinFast’s entry in January 2024, building its first Indian unit from scratch in 18 months, accelerated Thoothukudi’s industrial rejuvenation, drawing more investors to pick the ‘Pearl City’ as their destination. The investment climate in the port city took a huge beating after protests by locals forced the shutdown of Vedanta’s Sterlite Copper plant in 2018.
It was VinFast’s decision in January 2024 to choose Thoothukudi for its first India plant — the manufacturing unit was built from the scratch in a record 18 months — did accelerate the investment push in the city with many firms following suit.