VinFast Auto has announced its plans to integrate an electric vehicle (EV) manufacturing site in Thoothukudi, Tamil Nadu on February 25, 2024.
VinFast and the government of Tamil Nadu inked a Memorandum of Understanding (MoU) on January 6, 2024, outlining a commitment of approximately Rs 425 crore for the initial phase of the integrated EV facility. This investment spans five years from the commencement date and marks a crucial step in VinFast’s global expansion strategy, tapping into one of the world’s fastest-growing major economies and its burgeoning EV market.
The swift organization of the EV manufacturing plant ceremony just over a month after the MoU announcement with the Tamil Nadu government underscores VinFast’s determination and agility in executing its global expansion plan.
Anticipated to create between 3,000 to 3,500 local job opportunities, VinFast’s integrated EV manufacturing facility in Tamil Nadu aims to establish itself as a premier electric vehicle production hub in the region, boasting an annual capacity of up to 150,000 units at full throttle. This facility is poised not only to address developmental goals within the Indian market but also to fuel VinFast’s export program to South Asian, Middle Eastern, and African countries.
Furthermore, the project is poised to accelerate the development of green transportation, aligning with the government of India and state governments’ objectives to mitigate carbon emissions in the transport sector. The aim is to ensure that 30 per cent of newly registered private cars are electric.
In parallel, VinFast, which recently disclosed its fourth-quarter and full calendar year 2023 results, has set its sights on selling 100,000 EVs in 2024. With its entry into the US market, the company is keen on bolstering its competitive edge in other markets, particularly untapped, volume-driven markets like India and Indonesia.