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VinFast to Invest USD 500 Million in Tamil Nadu Expansion for Electric Buses and E-Scooters
Dec 06, 2025
VinFast has signed a new Memorandum of Understanding (MoU) with the Tamil Nadu government to significantly expand its manufacturing presence in Thoothukudi. The agreement secures nearly 200 hectares of land within the SIPCOT Industrial Park, enabling the company to broaden its portfolio to include electric buses, e-scooters, and supporting EV infrastructure as part of a USD 500 million scale-up plan.
Under the MoU, Tamil Nadu will provide VinFast with around 500 acres of land adjoining its existing facility. The state has also committed to assist with essential approvals and ensure access to key utilities such as electricity, water supply, internal road links, drainage systems, and waste management facilities. These measures are intended to accelerate the plant’s expansion and ease operational readiness.
The USD 500 million investment marks the second phase of VinFast’s earlier USD 2 billion commitment in India. The upcoming development will include new manufacturing and assembly units, testing facilities, and specialized production lines dedicated to electric buses and e-scooters, strengthening the company’s multi-segment EV strategy in the country.
Tamil Nadu has confirmed that VinFast will be eligible for all applicable incentives, policy benefits, and statutory exemptions under the state's current industrial framework. This support aims to promote faster execution of the project while boosting regional economic growth.
VinFast highlighted that this expansion aligns with its long-term India roadmap, contributing to greater supply-chain localisation, additional employment generation, and enhanced skill development for the local workforce. The company’s existing Thoothukudi plant spans 400 acres, includes internationally certified production lines, and currently has an annual capacity of 50,000 EVs—set to grow to 150,000 units after upgrades.
Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said the enlarged facility will allow VinFast to diversify its offerings in India, moving beyond electric cars into public transport and two-wheeler EVs. He added that Tamil Nadu will continue to play a key strategic role in the company’s global expansion and India’s broader green mobility vision.
Tamil Nadu’s Industries Minister, Dr. T.R.B. Rajaa, welcomed the investment, noting that the addition of electric buses and e-scooters will strengthen both the state and the country’s clean transport ecosystem. He assured the government’s full support throughout the implementation phase to ensure sustained economic and community benefits.
Since entering India, VinFast has been rapidly scaling its integrated EV ecosystem—encompassing manufacturing, sales, charging networks, aftersales services, and battery recycling. Its retail footprint has also expanded to 24 dealerships across major cities, with a target of reaching 35 outlets by year-end.