Vietnamese electric vehicle (EV) automaker VinFast announced it would build an integrated EV facility in Tamil Nadu, India.
The new EV facility in India will be located in Thoothukudi. VinFast aims to reach an annual production capacity of 150,000 electric vehicles at its new facility. Construction of the new facility is scheduled to start this year.
“We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties but will also help accelerate the green energy transition in India and the region,” said Tran Mai Hoa, VinFast Global’s Deputy CEO of Sales and Marketing.
Both parties agreed to work towards a total investment of $2 billion into the EV facility. The Vietnam-based EV manufacturer and the government of Tamil Nadu have committed to investing $500 million in the first phase of the EV facility, which will span 5 years from the start date.
VinFast’s EV facility in India is expected to generate 3,000 to 3,500 local jobs. The Asian automaker seeks to foster gender equality and offer advancement opportunities to the community through its new facility.
VinFast and the government of Tamil Nadu sealed their partnership with a Memorandum of Understanding, aiming to “charge” the development of green transportation in India. The Vietnamese automaker seeks to take advantage of the growth opportunities in India, which has a rapidly expanding EV market.
“EV manufacturing companies are not only important economic drivers but also powerful accelerators to the State’s green vision. We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility.
“Possessing robust capabilities and unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development,” noted Thallikotai Raja Balu Rajja, Tamil Nadu’s Minister of Industries.
In August 2023, VinFast Auto Ltd. achieved a market capitalization of $190 billion, making it the third-most valuable carmaker in the world. This achievement was quite a surprise to those observing the global auto industry. In a previous article, Teslarati explained how VinFast accomplished such a feat faster than Tesla.