VinFast has signed a Memorandum of Understanding with the Government of Tamil Nadu to expand its Thoothukudi facility through the allocation of about 200 hectares of additional land in the SIPCOT Industrial Park. The expansion will support production of electric buses, electric two-wheelers and charging infrastructure.
The land allocation, about 500 acres, will be adjacent to the existing site. The state government will provide support in securing permits and in establishing infrastructure including electricity, water, internal roads, drainage and waste management systems.
Investment and production plans
The expansion forms the second phase of VinFast’s $2 billion commitment in Tamil Nadu. The company plans to invest $500 million in Thoothukudi to set up workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly and testing. Applicable incentives and exemptions under state regulations will apply to the proposed investment.
The existing 400-acre facility has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units. The company said the initiative is expected to increase supply-chain localisation, create employment and support workforce skill development in the region.
“The expansion will allow the company to broaden its product range in India and support localisation, employment creation and workforce development,” said Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO. Tamil Nadu will remain a strategic hub in the company’s global plans, he added.
TRB Rajaa, Minister of Industries, Government of Tamil Nadu, said the introduction of electric bus and e-scooter production will support the state’s transport strategy. He said the government will work with VinFast to ensure favourable conditions during project implementation.
Distribution network and ecosystem
VinFast said it continues to develop a wider EV ecosystem in India, including manufacturing, distribution, charging, aftersales and battery recycling. The company currently has 24 dealers in major cities and aims to reach 35 by the end of the year.
