Tamil Nadu Secures VinFast's $2 Billion EV Future

VinFast is set to expand its Tamil Nadu facility to manufacture electric buses, e-scooters, and charging equipment, marking a major step in strengthening its presence in India. The Vietnamese EV maker has signed a new agreement with the Tamil Nadu government, under which the state will allocate about 200 hectares of land adjacent to VinFast’s existing plant in the SIPCOT Industrial Park at Thoothukudi.

The land allocation will support the company’s planned USD 2-billion expansion, enabling dedicated production lines for multiple electric mobility products. Industries Minister T.R.B. Rajaa stated that the project will help advance Tamil Nadu’s clean-transport goals while generating new employment opportunities, adding that the government will ensure a supportive environment throughout the project’s implementation.

VinFast’s proposed USD 500-million investment qualifies for incentives under the state’s industrial policy. The expanded Thoothukudi plant will drive higher localisation, cater to diverse customer needs, and support the company’s broader global growth strategy. CEO Pham Sanh Chau highlighted Tamil Nadu’s strategic importance in VinFast’s long-term plans and its expected production ramp-up.

News by Rahul Yelligetti.