Vinfast expansion in TN targets electric bus, two-wheeler production

CHENNAI: After entering the country with swanky electric cars manufactured from its greenfield plant in Thoothukudi, the Vietnamese auto major will now pump in $500 million to expand its product portfolio to offer electric buses and e-scooters, two divisions within the automobile sector that are growing rapidly.

The company signed a memorandum of understanding (MOU) with Guidance Tamil Nadu, the State government’s nodal agency, under which the State would allocate 500 acres of land (approximately 200 hectares) in the Sipcot Industrial Park in Thoothukudi to expand the company’s facility.

The land is adjacent to VinFast’s existing unit.

The company will also offer charging infrastructure, a key element that is required to hasten the world’s third-largest automotive market’s transformation to electric mode.

Noting that the expansion would create new job opportunities, advance localisation, and strengthen the skills of the local workforce, Pham Sanh Chau, the chief executive officer of both Vingroup Asia and VinFast Asia, said, “VinFast believes Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”

State Industries Minister TRB Rajaa said the government has promised to back VinFast’s growth strategy every step of the way. “We will enable infrastructure, fast-track approvals, and ensure talent availability at lightning pace.

This expansion means more than investment, it means faith in the ecosystem, it means more jobs for Tamil Nadu, and it means more localisation,” he said.

This expansion, which is the second phase of its commitment to an overall investment of $2 billion in Thoothukudi, would entail the company pumping in $500 million to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations.

On its part, the Tamil Nadu government will extend all applicable incentives, financial support measures, and statutory exemptions in accordance with the prevailing regulations and relevant policies.

The existing Thoothukudi facility covers 400 acres (160 hectares) and is equipped with internationally standardised production lines, with an initial annual capacity of 50,000 electric vehicles. The company is expanding the capacity to 1,50,000 units.

“The State government is committed to working closely with VinFast and ensuring favourable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and its flourishing ecosystem provides jobs for Tamil Nadu,” a statement quoted Minister Rajaa as saying.