The Vietnamese auto giant has arrived on our shores with all guns blazing
VinFast has announced its plans for production expansion at its Tamil Nadu facility to manufacture electric buses and two-wheelers. We know that it will not just be selling passenger electric cars here, but also other automobiles. In essence, it sees the Indian automotive market as a great opportunity to expand its global footprint. Hence, its commitment to India is a reflection of what it wants from our geography. Therefore, it has just signed the Memorandum of Understanding (MoU) with the Government of Tamil Nadu. Here are the details of that MoU.
VinFast Plans Expansion of Production Facility
The company has signed an MoU with the Government of Tamil Nadu to expand its presence in Thoothukudi, where it already operates a large EV plant. As part of the agreement, the state will allocate about 500 acres of land next to VinFast’s existing facility. The government will also help with key approvals and provide essential infrastructure connections such as electricity, water, internal roads, drainage and waste management. This expansion marks the second phase of VinFast’s earlier USD 2 billion commitment for India. The company now plans to invest an additional USD 500 million to set up dedicated workshops and production lines for electric buses and e-scooters.
These will handle everything from manufacturing and assembly to testing and related operations. In return, Tamil Nadu will extend applicable incentives and statutory exemptions as per state policies, which are in line with how major industrial investments are typically supported. For Tamil Nadu, the move is expected to bring more local jobs and skill development opportunities. It should also help deepen the EV supply chain in the region, something both the state and central governments have been trying to push for.
VinFast’s existing 400-acre facility already has standardized production lines with an annual capacity of 50,000 EVs, and an expansion to 150,000 units is underway. Since entering India, the company has been steadily putting together a full EV ecosystem covering manufacturing, sales, charging, service and battery recycling. The Thoothukudi plant plays a crucial role in that plan. On the retail front, VinFast’s dealer network is also growing quickly, with 24 outlets already operational in major cities and a target of 35 by year-end. Overall, the latest MoU shows the company’s continued push to secure a foothold in India’s fast-evolving EV market.
Also Read: VinFast VF3 vs MG Comet EV – Specs, Features Comparison
