VinFast to expand Tamil Nadu EV facility, targets e-buses and e-scooters

Tamil Nadu government will allocate an additional 200 hectares of land to VinFast.

VinFast and the Tamil Nadu government have signed a Memorandum of Understanding (MoU) to allocate about 200 hectares (roughly 500 acres) of land in the SIPCOT Industrial Park at Thoothukudi, marking the next phase of the company's expansion plan in India.

The land parcel, located adjacent to the company's existing facility, will support development of new manufacturing capabilities for electric buses, electric scooters and charging infrastructure, broadening VinFast's India portfolio beyond electric cars.

Under the agreement, the state government will allocate the land parcel and extend support in securing permits and establishing essential infrastructure such as electricity, water supply, road access, drainage systems and waste-management facilities.

The MoU forms part of VinFast's second-phase investment of USD 500 million in Thoothukudi, drawn from its broader USD 2 billion commitment announced earlier. This phase will include creation of dedicated workshops and production lines for buses and two-wheelers, covering manufacturing, assembly and testing operations.

Tamil Nadu will apply applicable incentives, financial support measures and statutory exemptions to the proposed investment, in line with its electric vehicle (EV) and industrial policies. The state has positioned Thoothukudi as a key emerging hub for new-energy manufacturing, and expects VinFast's expansion to add momentum to its green-mobility roadmap. The initiative is also projected to create additional employment and advance localisation, aligned with the company's plan to strengthen its India-based supply chain.

VinFast's existing Thoothukudi facility spans 160 hectares (around 400 acres) and houses internationally standardised production lines. The plant has an initial capacity of 50,000 EVs per year and is currently being expanded to 1,50,000 units. The additional 200 hectares will allow the company to scale operations for multiple vehicle segments without further land acquisition.

"The proposed expansion of the Tamil Nadu plant will enable us to broaden our product line-up in India, from electric cars to electric buses and electric scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localisation 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 Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO.

Tamil Nadu Industries Minister T.R.B. Rajaa said, "We welcome VinFast's next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and electric scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India."

VinFast currently sells two electric SUVs in India -- VF6 and VF7. While the VinFast VF6 price starts at Rs 16.49 lakh, the VinFast VF7 price begins at Rs 20.89 lakh. Both prices are introductory ex-showroom.

The company has been expanding its India ecosystem to include manufacturing, distribution, charging solutions, after-sales services and battery recycling. Its dealer network has grown to 24 outlets, with a target of reaching 35 by year-end.