VinFast Invests $500M In EV Facilities In India
Source: VinFast
VinFast, the Vietnamese electric vehicle (EV) powerhouse, has inked a deal to establish its inaugural manufacturing facilities in India, a strategic move to make waves in the world’s third-largest vehicle market.
In collaboration with the southern state of Tamil Nadu, VinFast is embarking on a significant investment journey, aiming for a total commitment of up to US$2 billion, with an initial infusion of US$500 million earmarked for the project’s first five years, as outlined in their joint statement.
The ambitious venture is set to kick off this year, projecting the creation of 3,000 to 3,500 jobs locally, according to the statement. Reports from Reuters on Wednesday unveiled VinFast’s plan to inaugurate its first Indian manufacturing facility in Thoothukudi, Tamil Nadu, focusing on the production of cutting-edge EV batteries.
The MoU demonstrates VinFast’s strong commitment to sustainable development and vision of a zero-emission transportation future. Tran Mai Hoa, Deputy CEO of Sales and Marketing at VinFast Global, said,“ 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.”
Founded in 2017 and venturing into EVs since 2021, VinFast has been making waves with its global expansion plans. Following its Nasdaq debut in August, the company hinted at its expansion into the Indian market a month later.
Tamil Nadu’s capital, Chennai, often dubbed the Detroit of Asia, already hosts several players in the EV arena, including Ola Electric, Ather (Indian two-wheeler makers), and BYD from China.
VinFast envisions the Tamil Nadu project evolving into a top-notch EV production hub in the region, boasting an annual capacity of up to 150,000 vehicles, although specifics about the battery facility’s capacity were not disclosed in the joint statement.
While electric models constituted only about 2% of India’s car sales last year, the national government has set an ambitious target of 30% by 2030, actively developing schemes to attract EV manufacturers. The Tamil Nadu government has committed to providing cleared land, uninterrupted power supply, and additional infrastructure support for VinFast’s manufacturing facilities.
VinFast’s ambitions don’t stop there – they’re gearing up for a nationwide dealership network, adding another layer to their electrifying plans.