VinFast announced plans to break ground at its integrated electric vehicle production plant in Tamil Nadu on February 25, marking a significant advancement in the Vietnamese electric automaker’s penetration in Tata Motors’ home turf.
VinFast to break ground in Tamil Nadu factory
According to the press release, VinFast now aims to kick off the five-year construction process of its new Tamil Nadu electric vehicle production plant in Thoothukudi City on Sunday. It will signify the official commencement of the project’s first phase of development.
VinFast’s Tamil Nadu factory will emerge as a “first-class electric vehicle production hub” in the region. It has a maximum annual production capacity of 150,000 units in full operation.
Apart from supplying the Indian market with VinFast EVs, the upcoming Tamil Nadu factory will also export to other foreign markets. Some of these countries include those in South Asia, the Middle East, and Africa.
VinFast expects the new factory to create 3,000 to 3,500 job opportunities for the locals, highlighting the Vietnamese automaker’s valuation for India’s socio-economic development.
Brief background
VinFast formally inked a Memorandum of Understanding (MoU) with the Tamil Nadu State Government in January 2024, committing them to work on a maximum investment of $2 billion. Of that total, $500 million will fund the first phase of the project.
Despite failing to achieve its 2023 delivery targets, VinFast continues to expand its electric automotive business across the world. Some of these markets include the US and Europe.
To further boost its electrification efforts, VinFast keeps on launching new models like the VF 3 and the Wild electric pickup concept.
Potential impacts
VinFast new Tamil Nadu factory will significantly promote sustainable mobility in India, a crucial goal of the government in cutting the transportation sector’s C02 emissions.
For context, India aims to have electric vehicles account for 30% of the country’s total new vehicle sales by the end of the decade.
“The project will catalyze green transportation development which is key agenda for the government of India and the States of curtailing carbon emissions in the transport sector, targeting 30% of newly registered private cars to be electric.”
VinFast said in the press release
In return, the Indian government’s support for VinFast will enable the Vietnamese automaker to achieve great lengths in the country’s electric vehicle market. Succeeding in the Indian market is a crucial part of VinFast’s strategy to advance as a global leader in electric vehicle sales, highlighting its dedication to contributing to a more sustainable transportation future for all.
