VinFast has taken another major step in its India expansion journey. The company has signed a Memorandum of Understanding (MOU) with the Government of Tamil Nadu to allocate around 200 hectares (approximately 500 acres) of land in the SIPCOT Industrial Park, Thoothukudi. This move strengthens VinFast’s commitment to India, the world’s third-largest automotive market, and opens the door for a wider range of electric vehicles.
A Big Boost for VinFast’s India Plans
Under this new MOU, Tamil Nadu will provide additional land next to VinFast’s existing Thoothukudi plant. The state government will also support the company with essential permits and help establish key utilities such as electricity, water supply, internal roads, drainage, and waste management systems.
This expansion aligns with VinFast’s long-term EV strategy in India, enabling the brand to diversify beyond electric cars. With this new phase, VinFast plans to manufacture electric buses, e-scooters, and charging infrastructure, strengthening its presence across multiple mobility segments.
USD 500 Million Investment in Phase 2
As part of the second phase of its USD 2 billion investment commitment, VinFast will invest USD 500 million to develop dedicated production lines and workshops for electric buses and e-scooters. These new facilities will cover manufacturing, assembly, testing, and other essential operations.
The Tamil Nadu government has confirmed that VinFast will receive all eligible incentives and statutory support under existing state policies for this project.
Strengthening Local Manufacturing & Job Creation
This expansion will not only boost VinFast’s manufacturing readiness in India but also:
Increase localization of the EV supply chain
Create new employment opportunities in the region
Support skill development for the local workforce
VinFast’s current Thoothukudi plant already spans 400 acres (160 hectares) with world-class production lines and an initial annual capacity of 50,000 electric vehicles. This capacity is being expanded to 150,000 units, further strengthening the facility’s strategic importance.
Mr. Pham Sanh Chau, Vingroup Asia CEO & VinFast Asia CEO, said that the expansion will allow the company to offer a broader product lineup — from electric cars to buses and e-scooters — tailored for India’s diverse mobility needs. He highlighted that Tamil Nadu will remain a strategic manufacturing hub and play a key role in India’s shift towards green mobility.
Dr. T.R.B. Rajaa, Minister of Industries, Government of Tamil Nadu, welcomed the investment and emphasized that the new EV manufacturing initiatives will support both state and national goals for sustainable transportation. He reiterated the government’s commitment to providing full support to VinFast to ensure long-term success and regional economic growth.
Since entering India, VinFast has worked rapidly to establish a complete EV ecosystem. This includes manufacturing, distribution, charging infrastructure, aftersales service, and battery recycling.
The company’s dealership network is expanding quickly, with 24 dealers already active in major cities and a target of 35 dealers by year-end.