Vietnamese electric automaker VinFast officially confirmed previous reports about its plans to develop a new integrated electric vehicle facility in Tamil Nadu, India, on Saturday.
Partnership with the government
According to the press release, the Tamil Nadu State Government and VinFast signed a Memorandum of Understanding (MoU) that commits them to work toward a $2 billion total investment.
Phase I of the project will access $500 million over five years from the commencement date. Notably, it is apparently the Vietnamese automaker’s third project development and the biggest investment in Tamil Nadu’s history.
“The MoU demonstrates VinFasts strong commitment to the sustainable development and vision of a zero-emission transportation future. 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.”
Ms. Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global
VinFast’s move to partner with the state government marks a key step in its efforts to become a major player in the world’s third-largest auto market.
“EV manufacturing companies are not only important economic drivers but also powerful accelerators to the State’s green vision. We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility. Possessing robust capabilities and unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development.”
Dr. TRB Rajaa, Minister of Industries of the Government of Tamil Nadu
Project details
VinFast and the Indian government expect the new integrated EV facility to create about 3,000 to 3,500 job prospects in Tamil Nadu.
The facility will arise in Thoothukudi, potentially becoming a first-class EV production center in the country.
VinFast set an annual production capacity target of up to 150,000 units, with factory development starting as early as this year.
Benefits
VinFast’s upcoming Indian electric vehicle facility is expected to pose growth prospects for the automaker in the world’s most populous country and its rapidly growing EV industry.
In return, it will aid India’s efforts to shift to green and sustainable mobility by hitting a 30% electric vehicle market share of the overall passenger car sales by 2030.
Apart from the integrated EV facility, VinFast also aims to establish a nationwide dealership network. It expects that this strategy will enable it to solidify its brand presence in the local market and seamlessly appeal to Indian customers. As for the Tamil Nadu factory, VinFast will begin its development this year.
