Vietnamese electric mobility giant VinFast has signed an MoU with the Tamil Nadu government for the allocation of 500 acres of land in the Sipcot Industrial Park, Thoothukudi. The land will support Phase II expansion of VinFast’s operations, enabling production of electric buses, escooters, and associated components. The company already manufactures electric cars at the current facility.
Second-Phase Investment of $500 Million Planned
The new land allocation is expected to translate into an additional $500 million investment, taking VinFast’s cumulative India commitment to $2 billion. Phase II development will include new workshops, assembly lines, testing zones, and related infrastructure for electric buses and escooters. VinFast previously invested $500 million in Phase I.
State Support and Incentives for EV Manufacturing
As part of the MoU, Tamil Nadu will extend applicable incentives, exemptions, and support in securing permits. The state will also help in establishing essential utilities, including electricity, water, internal roads, drainage, and waste management systems.
Boost to Localisation, Jobs, and Tamil Nadu’s EV Strategy
VinFast said the expansion would enhance supply-chain localisation, generate new employment, and accelerate workforce skill development. Pham Sanh Chau, Vingroup Asia CEO, said the move will broaden VinFast’s India product portfolio and create “lasting benefits for the community.” The Tamil Nadu government welcomed the expansion, calling it a boost for India’s green mobility ambitions.
Thoothukudi: VinFast’s Strategic Hub for Global EV Growth
VinFast’s existing 400-acre facility in Thoothukudi has an annual capacity of 50,000 EVs, being expanded to 150,000 units. The company aims to position Tamil Nadu as a strategic manufacturing hub within its global expansion roadmap. Its India EV ecosystem now includes manufacturing, charging infrastructure, after-sales services, and 24 dealers, with a target of 35 by year-end.
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