Vietnamese electric vehicle (EV) manufacturer VinFast has signed a memorandum of understanding (MoU) with the Tamil Nadu government with the intent to build an integrated EV facility in the South Indian state with an investment of up to $2bn.
For the first phase of the EV project, VinFast intends to commit an investment of $500m.
The company’s overall investment will be spread over five years from the commencement date.
According to VinFast, the strategy to enter the Indian market is designed to capitalise on growth opportunities in the world’s most populous nation and the rapidly expanding EV market. This move is a vital component of the company’s plan to establish a robust presence in key markets and enhance its supply chain for global expansion.
The establishment of VinFast’s EV facility in Tamil Nadu is expected to create approximately 3,000-3,500 job opportunities within the local community.
Located in Thoothukudi, the VinFast project in Tamil Nadu aspires to become a premier electric vehicle production hub in the region, with an annual capacity of up to 150,000 units.
Construction of the plant is slated to commence in 2024.
VinFast global sales and marketing deputy CEO Tran Mai Hoa said: “The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emission transportation future.
“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.”
In addition to the economic advantages, the project will contribute to the advancement of green transportation, targeting a 30% share of newly registered private cars to be electric. This aligns with the state government’s efforts to reduce carbon emissions in the transportation sector.
Tamil Nadu Minister of Industries TRB Rajaa said: “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.”