Vietnam-based electric vehicle (EV) manufacturer VinFast and the Tamil Nadu State Government announced a partnership in a Memorandum of Understanding (MoU) for the development of a VinFast electric vehicle manufacturing plant. VinFast and the State Government will work toward a total investment of up to US$2 billion, with an intended commitment of US$ 500 million for the first phase of the project, spanning five years from the commencement date.

The plan to expand into India aims to seize growth opportunities in the world's most populous nation and rapidly expanding EV market. This initiative forms a crucial part of VinFast's strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.

In a September 2023 article, the Times of India reported that the automotive sector is the major driver of investment in Tamil Nadu. While the state signed 17 MoUs up to that point in the fiscal year for an investment of 25,535 crore (US$3.1 billion), just three auto investments accounted for 79% of the money at 20,238 crore (US$2.4 billion).

The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is anticipated to generate approximately 3,000 - 3,500 employment opportunities locally.

Situated in Thoothukudi, the VinFast Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units. Construction of the plant is anticipated to begin in 2024.

VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. Considering the tangible economic and social benefits that are engendered due to the establishment of the project, the Government of Tamil Nadu also commits to providing cleared land for the manufacturing facilities, uninterrupted power supply, and other infrastructure support on a best-effort basis.

Additionally, both parties will continue to collaborate and discuss opportunities for charging stations to steer toward a clean mobility future.

In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country.

by greencarcongress