VinFast Announces $500 Million Expansion of Tamil Nadu EV Facility

VinFast is moving into a bigger phase in India as the company and the Government of Tamil Nadu have signed a new MoU to allocate 200 hectares of land inside the SIPCOT Industrial Park in Thoothukudi.

The agreement strengthens VinFast’s plan to scale up its footprint and marks a key step in the State’s push toward cleaner transportation.

The Vietnamese automaker will widen its portfolio beyond electric cars, adding electric buses, e-scooters, and charging infrastructure.

As part of the second phase of its existing $2 billion commitment, VinFast will invest $500 million to build dedicated workshops and production lines for these new products. The expansion will include manufacturing, assembly, testing, and other operations that support the company’s broader EV strategy.

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“We welcome VinFast’s next phase of planned development of electric cars in Tamil Nadu. The introduction of electric buses and e-scooters will generate additional momentum for the green transportation strategy of Tamil Nadu and India,” Industries Minister T.R.B. Rajaa said.

Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said, “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product line-up in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create job opportunities, advance localisation, and strengthen the skills of the local workforce.”

Under the MoU, Tamil Nadu will allocate about 500 acres of land next to the current plant and help VinFast secure permits while building essential infrastructure such as electricity, water, internal roads, drainage, and waste management systems. The State will also extend all eligible incentives and exemptions under its current policies for the company’s proposed investment.

VinFast’s existing facility spans 400 acres and has an initial annual capacity of 50,000 electric vehicles. The plant is already being scaled up to 150,000 units, positioning it as a major EV hub for the region.