Staff Writerr
Hanoi: VinFast has taken a major step in its India strategy by expanding its manufacturing footprint in Tamil Nadu to include electric buses and electric two-wheelers. The company signed a Memorandum of Understanding with the state government to allocate around 200 hectares of additional land at the SIPCOT Industrial Park in Thoothukudi, enabling the next phase of its investment plan in the country.
Under the agreement, the state will provide roughly 500 acres of land adjoining VinFast’s existing facility and assist with statutory approvals. Tamil Nadu will also help establish key infrastructure, including electricity supply, water connections, road access, drainage and waste management systems. The expansion forms the second phase of VinFast’s earlier USD 2 billion commitment, with the company set to invest USD 500 million to establish new workshops and production lines for electric buses and e-scooters covering manufacturing, assembly and testing.
The state government will apply eligible incentives and financial support measures as per its policies. VinFast expects the expansion to boost its manufacturing capabilities in India, increase localization, create new jobs and contribute to skill development in the region. The company’s existing Thoothukudi plant spans 400 acres and houses global-standard production lines. It currently has an annual capacity of 50,000 electric vehicles, which is being scaled up to 150,000 units.
Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said the expansion would allow the company to diversify its India portfolio beyond electric cars and better serve customer needs. He noted that Tamil Nadu remains a strategic hub for the company’s global growth and will support India’s push toward green mobility.
Tamil Nadu’s Industries Minister T.R.B. Rajaa said the introduction of electric buses and scooters would strengthen both state and national sustainability goals. He added that the government would continue extending support to ensure VinFast’s long-term success and economic contribution in the region.
VinFast has been expanding its presence in India through a broader EV ecosystem that includes manufacturing, distribution, charging infrastructure, service and battery recycling. Its retail network now includes 24 dealerships across major cities, with a target of reaching 35 outlets by year-end. The company said the Tamil Nadu facility will remain central to its plan to bring innovative, sustainable and customer-focused mobility solutions to the Indian market.
