AUGUST 20258VINFAST TO INVEST $2 BILLION IN TAMIL NADU PLANT FOR INDIA EV ENTRYNO DRASTIC MILEAGE LOSS WITH E20 PETROL, GOVERNMENT CONFIRMSIndia's electric vehicle (EV) manufacturing landscape received a major boost as Vietnamese auto major VinFast operationalized its $2 billion facility in Thoothukudi, Tamil Nadu -- the fastest scale-up by a foreign carmaker in the country. The plant, VinFast's first in India and third globally, was commissioned within 17 months of signing an agreement with the Tamil Nadu government.The Ministry of Petroleum and Natural Gas clarified that E20 petrol does not cause drastic mileage loss, dismissing recent claims as factually inaccurate and unscientific.To address public concerns, the ministry said the claims were not supported by data and credible experts.In a detailed statement, the government explained that vehicles designed for E10, but still calibrated for E20 petrol, might experience a very small effect on mileage of about 1-2%.Located on a 400-acre land, the plant was launched by the Tamil Nadu Chief Minister, MK Stalin, who pointed out that the state contributes 40 percent of India's EV manufacturing. As of 2022 to date, VinFast has invested 1,300 crore in the facility and it is aiming to initially produce 50,000 units of electric SUVs (including VF 6 and VF 7 models) a year. A full capacity facility will yield 150,000 vehicles annually and have the ability to hire up to 3,500 employees.VinFast is planning India as an export and manufacturing hub in the first place, with Sri Lanka, Nepal, Mauritius, and Bangladesh being among the initial buyers. The company has opened pre-bookings for VF 6 and VF 7 at 21,000 and launched retail operations, starting with showrooms in Surat and Chennai."We feel very, very proud because this is the first manufacturing facility outside Vietnam," said Pham Sanh Chau, CEO of VinFast Asia. "We aim to develop it into VinFast's largest export hub for South Asia, the Middle East, and Africa."Backed by partnerships for battery recycling, service networks, and dealership expansion, VinFast aims to establish 35 outlets across 27 cities by year-end, strengthening Tamil Nadu's status as India's EV capital. Other vehicles were estimated at 3-6%, which can be cut down on with better engine tuning and E20-compliant parts already used by an industry leader. According to the Society of Indian Automobile Manufacturers (SIAM), E20-ready vehicles have been in production since April 2023.Regarding the worry about corrosion, the ministry states that E20 petrol is still tested under established standards for safety regarding price compliance under Bureau of Indian Standard (BIS) and the Automotive Industry Standards, (AIS). Older vehicles may require certain parts after 20,000-30,000 km. However, these parts are inexpensive and typically only require replacement during servicing.From an environmental and performance standpoint, ethanol--a key component in E20--offers clear advantages. Ethanol's higher octane number enhances engine performance and efficiency, while its renewable nature reduces greenhouse gas emissions. A NITI Aayog study shows ethanol from sugarcane and maize cuts emissions by up to 65%.The government also highlighted that ethanol blending strengthens India's energy security, saving over 1.40 lakh crore in crude oil imports since 2014 and significantly supporting farmer incomes and rural employment. TOP STORIESTOP STORIESTOP STORIES
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