Vietnamese EV maker VinFast enters India; announces $2 billion investment in Tamil Nadu

As Elon Musk's Tesla prepares to enter the growing Indian EV market, VinFast, another EV maker based out of Vietnam, has announced its entry into the Indian market with a significant investment.

The company plans to invest up to $2 billion in Thoothukudi, Tamil Nadu, to establish an integrated manufacturing facility for electric cars and batteries.

Project details

According to the company's statement, The initial phase of the project, with an investment of $500 million, aims to set up a factory with an annual capacity of 150,000 units.

The venture is expected to generate 3,000 to 3,500 jobs, boosting local employment and skill development. The construction of the facility is set to begin in 2024, indicating VinFast's readiness to tap into the rapidly growing EV sector.

VinFast's global expansion and leadership changes

VinFast is expanding its global footprint, with manufacturing complexes in North Carolina and plans for a factory in Indonesia. The development follows the recent change in its leadership, with Pham Nhat Vuong taking over as CEO and Le Thi Thu Thuy becoming the head of the board.

The strategic shift comes as VinFast prepares for aggressive expansion in Southeast Asian markets and beyond.

Why Tamil Nadu?

Tamil Nadu, known as India's Detroit, is emerging as a major hub for EV manufacturing. The state government's proactive policies and infrastructure support have attracted significant investments in the EV sector. 

“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,” Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global, said.

“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,” he added.

Future plans and India-specific models

In addition to the manufacturing facility, VinFast plans to establish a nationwide dealership network in India. The company will initially import electric sports utility vehicles (SUVs) and later introduce India-specific models.

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