VinFast Accelerates India Strategy: New $500M Expansion for E-Buses and Scooters in Tamil Nadu
#VinFastIndia #TamilNadu #ElectricMobility #GreenTransportation #MakeInIndia #EVManufacturing #SustainableFuture“The state government is committed to working closely with VinFast and ensuring favorable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing ecosystem provides jobs for Tamil Nadu.” - Dr. T.R.B. Rajaa - Minister of Industries, Government of Tamil Nadu
December 2025 : In a move that cements India’s position as a global green mobility hub, Vietnamese EV giant VinFast has recently announced a massive expansion of its manufacturing footprint in Tamil Nadu. The company signed a Memorandum of Understanding (MOU) with the Government of Tamil Nadu to allocate an additional 200 hectares of land at the SIPCOT Industrial Park in Thoothukudi.
This expansion marks the second phase of VinFast’s total $2 billion commitment to India. The new $500 million investment is specifically targeted at developing dedicated production lines for electric buses and e-scooters, moving beyond the company's initial focus on electric cars.
The new facility will be a comprehensive "end-to-end" hub, covering everything from manufacturing and assembly to rigorous testing. This land allocation adds to VinFast’s existing 400-acre site, which is already scaling its annual electric vehicle capacity from 50,000 to 150,000 units.
The deal reflects a deepening synergy between the Vietnamese conglomerate and the Tamil Nadu state government, focusing on localization and high-tech job creation. “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs,” said Mr. Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO. “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.”
Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu, added: “We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and ensuring favorable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing ecosystem provides jobs for Tamil Nadu.”
With 24 dealers already operational and a target of 35 by year-end, VinFast is rapidly building a robust distribution and charging infrastructure to support India's transition to a cleaner, electric future.
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