Vietnamese EV major VinFast has strengthened its India strategy with a new $500 million investment commitment in Tamil Nadu, following the signing of a Memorandum of Understanding (MoU) with Guidance Tamil Nadu.
The agreement marks the second phase of VinFast’s larger $2 billion investment plan for the state.
The MoU was signed in the presence of senior representatives from both sides, including Pham Sanh Chau, MD & CEO of Vingroup Asia Operations, and Prabakaran Andi Saravanan, Associate Vice President, Guidance Tamil Nadu.
A Major Boost for Tamil Nadu’s EV Ecosystem
Under this new phase, VinFast will expand its operations in Thoothukudi, where the company aims to establish world-class manufacturing lines for electric buses and electric two-wheelers.
The facility will support the full production cycle, from manufacturing and assembly to testing, ensuring a vertically integrated clean-mobility ecosystem.
According to VinFast India, this investment underscores Tamil Nadu’s growing importance in the company’s global strategy, positioning the state as a key hub for EV production in the region.
Scaling Up Existing Operations
VinFast’s Phase 1 plant in Tamil Nadu already covers ~160 hectares and has an initial annual production capacity of 50,000 electric vehicles.
The company has begun scaling the plant to achieve a significantly higher capacity of 150,000 EVs per year.
The Phase 2 expansion, which includes land allocation within the SIPCOT Industrial Park in Thoothukudi, will broaden VinFast’s product portfolio beyond electric cars to include:
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Electric buses
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Electric scooters / two-wheelers
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Charging infrastructure
A Strategic Move for Both Sides
For Tamil Nadu, the partnership accelerates its aim to be India’s leading EV manufacturing hub.
For VinFast, it strengthens its presence in one of the world’s fastest-growing automotive markets.
Pham Sanh Chau highlighted that this investment is not just an expansion but a strategic milestone that brings VinFast closer to its vision of building a comprehensive clean-mobility ecosystem in India.
