VinFast pours more investments in India to expand portfolio

MANILA: VinFast will widen its vehicle portfolio soon with the expected addition of electric buses and e-scooters to its lineup.

Such a move is in the works as the Vietnam-headquartered marque recently signed an agreement with the Government of Tamil Nadu in line with the plan to allocate around 200 hectares of land to support the development of the former’s existing facility.

The memorandum of understanding (MOU) between the two parties will provide an opportunity for VinFast to broaden its product portfolio from electric cars to electric buses, e-scooters and charging infrastructure, while reaffirming the company’s long-term commitment to the world’s third largest automotive market.

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Under the newly-inked pact, the Government of Tamil Nadu will allocate the said portion of land that can be found adjacent to VinFast’s existing facility in Thoothukudi — and will help the company secure required permits and all the essential infrastructure connections (electricity, water, internal road access, drainage, and waste management).

For its part, the automaker is set to shell out $500 million — as part of the current $2-billion commitment in the area — to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations.

Meanwhile, the Government of Tamil Nadu will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the State’s prevailing regulations and relevant policies.

The initiative is also expected to increase supply chain localization, create additional employment opportunities, and support workforce skill development in the region.

The current 160-hectare Thoothukudi facility is equipped with production lines — with an initial annual capacity of 50,000 electric vehicles. With the expansion program, it is eyed to have the capacity to manufacture 150,000 examples.

“The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs,” Vingroup Asia and VinFast Asia Chief Executive Officer Pham Sanh Chau said.

“We also expect this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce. VinFast believes that 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,” the official added.

For his part, Tamil Nadu Minister of Industries Dr. T.R.B. Rajaa welcomed the brand’s plans — saying that it will further boost green transportation in both Tamil Nadu and India as a whole.

“The state government is committed to working closely with VinFast and ensuring favorable 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 their flourishing ecosystem provides jobs for Tamil Nadu”.

Since entering the Indian market, VinFast has continuously expanded its comprehensive EV ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services and battery recycling, with the Tamil Nadu plant being an important part of this ecosystem. At the same time, the company’s distribution network is rapidly growing, with 24 dealers already operating in major cities and a target of reaching 35 by the end of the year.

With a consistent focus on innovation, sustainability and customer-centric design, VinFast is committed to supporting India’s transition toward environmentally friendly mobility solutions and contributing to a greener and more inclusive automotive future.

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