Vietnamese EV manufacturer VinFast has announced a major expansion of its Tamil Nadu operations, signing an MoU with the state government to allocate nearly 200 hectares (around 500 acres) of additional land at the SIPCOT Industrial Park in Thoothukudi. The move marks a significant step in VinFast’s strategy to broaden its EV portfolio in India—from electric cars to electric buses, e-scooters, and charging infrastructure.
The expansion forms the second phase of VinFast’s existing USD 2 billion commitment in the state. Under this phase, the company will invest USD 500 million to establish new workshops and production lines dedicated to electric buses and electric two-wheelers. The facilities will support manufacturing, assembly, and testing, significantly strengthening VinFast’s EV footprint in the world’s third-largest automotive market.
As part of the MoU, the Tamil Nadu government will provide land, essential infrastructure connections—including power, water, internal roads, drainage, and waste management—and support in securing statutory permits. Applicable incentives and regulatory benefits will also be extended to the proposed investment.
VinFast’s existing Thoothukudi plant spans 400 acres and is equipped with globally standardized production lines. Its current annual capacity of 50,000 electric vehicles is already being expanded to 150,000 units to meet fast-growing EV demand.
Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, said the expansion will enable the company to address a wider range of customer needs in India while creating jobs, boosting supply-chain localization, and helping advance India’s green mobility goals. Tamil Nadu Industries Minister Dr. T.R.B. Rajaa welcomed VinFast’s extended commitment, saying the new EV categories would accelerate both state and national clean-transportation strategies.
Since entering India, VinFast has rapidly expanded its integrated EV ecosystem, covering manufacturing, distribution, charging infrastructure, aftersales services, and battery recycling. The company already has 24 dealers across major cities and targets 35 by year-end.
With its renewed focus on innovation, sustainability, and customer-centric EV design, VinFast aims to strengthen its position in India’s fast-growing electric mobility landscape.
