VinFast Invests $2 Billion in Tamil Nadu for Entry into Indian EV Market

Amidst Tesla’s impending foray into the burgeoning Indian electric vehicle (EV) market led by Elon Musk. VinFast, a Vietnamese electric vehicle manufacturer, has declared its entrance into the Indian market, backed by a substantial investment.

VinFast aims to inject a staggering $2 billion into Thoothukudi, Tamil Nadu, for the establishment of a comprehensive manufacturing facility dedicated to electric cars and batteries.

As per the company’s announcement, the inaugural stage of the project involves a $500 million investment to establish a factory with an annual production capacity of 150,000 units.

This initiative is anticipated to create between 3,000 to 3,500 job opportunities, contributing significantly to local employment and skill enhancement. The commencement of facility construction in 2024 underscores VinFast’s proactive approach to capitalizing on the burgeoning electric vehicle sector.

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Recognized as India’s Detroit, Tamil Nadu is rapidly evolving into a prominent hub for electric vehicle (EV) manufacturing. The proactive policies and robust infrastructure support from the state government. They have successfully drawn substantial investments into the burgeoning 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.

Alongside the manufacturing facility, VinFast aims to set up an extensive dealership network across India. The initial phase involves the importation of electric sports utility vehicles (SUVs), followed by the subsequent introduction of models tailored specifically for the Indian market.