Vietnam’s EV manufacturer, VinFast, plans to invest $500 million in India, aiming to expand its manufacturing footprint and diversify its offerings beyond electric vehicles.
VinFast has entered into an MoU with the government of Tamil Nadu in southern India to broaden its Thoothukudi manufacturing campus. Under the agreement, the state will grant roughly 500 additional acres next to the company’s current site and assist with permits and key infrastructure, while VinFast commits $500 million toward the project’s second development phase.
The expansion will bring the Thoothukudi facility to about 900 acres, incorporating specialized workshops and production lines for electric buses, e‑scooters, and charging infrastructure, spanning manufacturing, assembly, testing, and other activities.
With this investment, VinFast aims to boost the plant’s yearly output from 50,000 vehicles to 150,000.
VinFast intends to introduce electric two-wheelers in India by 2026, beginning with two scooter models after dealer integration.
The company said it plans to grow its dealership network to 35 outlets by the end of the year, up from the current 24 across major cities, and is developing the Thoothukudi plant to serve as both a domestic production center and an export base.
“We also expect this initiative to create new job opportunities, advance localization, and strengthen the skills of the local workforce. VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead,” said Vingroup Asia CEO Pham Sanh Chau.
The automaker has pledged a phased investment of about ₹16,000 crore in India, focusing on localization rather than relying on direct imports.
The Thoothukudi plant is VinFast’s third factory and its first outside Vietnam. The company launched its first Indian showroom in July.
Since entering the market, it has introduced compact SUVs like the VF 6 and VF 7 and plans to launch new models roughly every six months, including a seven-seat MPV scheduled for early next year.
The automaker reported delivering 97,399 EVs globally in 2024 and is aiming to double the figure.
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