This marks the second phase of the automaker’s previously pledged $2 billion investment in the country.
Under a new memorandum of understanding signed with the Tamil Nadu state government, around 200 hectares of land in the SIPCOT Industrial Park will be allocated to support expansion of VinFast’s existing facility. The state will also assist in acquiring necessary permits and in developing essential infrastructure, including electricity, water, internal roads, drainage, and waste management systems.
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A representative of VinFast (L) and India’s Tamil Nadu state pose for a photo at a MOU signing ceremony in Hanoi, Dec. 4, 2025. Photo courtesy of VinFast |
For VinFast’s proposed $500 million investment, the government of Tamil Nadu will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the state’s prevailing regulations and relevant policies.
With the signing of this MoU, VinFast takes another step forward in strengthening its manufacturing readiness in the Indian market. The initiative is also expected to increase supply chain localisation, create additional employment opportunities, and support workforce skill development in the region.
The existing Thoothukudi facility covers 160 hectares and is equipped with internationally standardised production lines. It has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated that the proposed expansion of the Tamil Nadu plant will enable VinFast to broaden its product lineup in India, from electric cars to electric buses and e-scooters, allowing it to meet a wider range of customer needs.
Dr. T.R.B. Rajaa, Minister of Industries of the government of Tamil Nadu, said they welcome VinFast’s next phase of planned development of electric cars in Tamil Nadu, and that 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 favourable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy, he added.
Since entering the Indian market, VinFast has continuously expanded its comprehensive electric vehicle ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services and battery recycling. At the same time, the company’s distribution network is rapidly growing, with 24 dealers already operating in major cities and a target of reaching 35 by the end of the year.
