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CM Stalin lays foundation stone for VinFast's EV plant in south Tamil Nadu

VinFast, a major competitor to American electric vehicle (EV) maker Tesla, has earmarked investments of Rs 16,000 crore in the state.
Last Updated 25 February 2024, 18:58 IST

Tuticorin: Tamil Nadu Chief Minister MK Stalin on Sunday laid the foundation stone of Vietnamese EV manufacturer VinFast Auto's vehicle and battery product facility.

VinFast, a major competitor to American electric vehicle (EV) maker Tesla, has earmarked investments of Rs 16,000 crore in the state.

Tesla has been negotiating with the Centre to lower customs duty to allow it to sell its imported vehicles in India before setting up a manufacturing facility in the country.

VinFast's start of work on its plant in India comes just 50 days after the signing of a Memorandum of Understanding (MoU).

The MoU with the Tamil Nadu government for the plant was signed during the Global Investors Meet held by the DMK-led dispensation in January.

'With Rs 16,000 crore investments and 10,000-plus jobs on the horizon, we are charging ahead into a future where opportunity and innovation meet,' Stalin said in a release.

VinFast said it will invest Rs 4,000 crore over the next five years in the initial phase, which will generate 3,500 jobs in the Tuticorin region.

The plant will have a capacity to produce 1.50 lakh vehicles once it becomes operational.

VinFast India CEO Pham Sanh Chau said the company's groundbreaking ceremony for the plant is a significant stride towards sustainable and green mobility in India.

'By establishing an integrated electric vehicle facility, the company's commitment to job creation, green transportation, and strategic partnerships solidifies VinFast's position as a major player in the electric vehicle industry,' he added.

India represents a key market in the Vietnam-based company's global expansion plan, capitalising on the potential presented by the rapidly-growing market.

In addition to the manufacturing facility, VinFast plans to establish a nationwide dealership network in India to build a strong brand presence and swiftly connect with customers.

The project stands testament to the commitment of the chief minister for distributed industrial growth and the creation of jobs for youngsters across all districts of the state, Tamil Nadu's Minister for Industries TRB Rajaa said.

Established in 2017, VinFast owns an automotive manufacturing complex with up to 90 per cent automation in Hai Phong, Vietnam.

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(Published 25 February 2024, 18:58 IST)

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