VinFast and the Government of Tamil Nadu have signed a Memorandum of Understanding (MoU) to allocate approximately 200 hectares of land at the SIPCOT Industrial Park in Thoothukudi to support the expansion of the company’s existing manufacturing facility. The move marks a significant step in VinFast’s India strategy, enabling it to expand its product portfolio beyond electric cars to include electric buses, e-scooters and charging infrastructure, while reinforcing its long-term commitment to the world’s third-largest automotive market.
Under the MoU, the Government of Tamil Nadu will allocate around 500 acres (approximately 200 hectares) of land adjacent to VinFast’s current facility in Thoothukudi. The state will also facilitate the required approvals and support the development of essential infrastructure, including electricity and water supply, internal road connectivity, drainage, and waste management.
As part of the second phase of its previously announced USD 2 billion investment commitment, VinFast will invest USD 500 million in Thoothukudi to establish dedicated workshops and production lines for electric buses and e-scooters. These facilities will support end-to-end operations, including manufacturing, assembly, testing and related processes.
For the proposed USD 500 million investment, the Government of Tamil Nadu will extend applicable incentives, financial support measures and statutory exemptions in line with prevailing state policies and regulations.
The expansion is expected to further strengthen VinFast’s manufacturing readiness in India, enhance supply-chain localisation, generate additional employment opportunities and support skill development in the region.
VinFast’s existing Thoothukudi facility spans 400 acres (around 160 hectares) and is equipped with internationally benchmarked production lines. The plant currently has an annual production capacity of 50,000 electric vehicles, which is being scaled up to 150,000 units.
Commenting on the development, Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said the proposed expansion would enable the company to broaden its product lineup in India, addressing a wider spectrum of customer needs across electric cars, buses and e-scooters. He added that the initiative would create new employment opportunities, advance localisation efforts and strengthen the skills of the local workforce, while positioning Tamil Nadu as a strategic hub in VinFast’s global expansion and supporting India’s green mobility ambitions.
Dr. T.R.B. Rajaa, Minister for Industries, Government of Tamil Nadu, said the next phase of VinFast’s development, including the introduction of electric bus and e-scooter manufacturing, would provide additional momentum to the state’s green transportation strategy. He reaffirmed the state government’s commitment to working closely with VinFast to ensure smooth implementation and long-term benefits for the local community and regional economy.
Since entering the Indian market, VinFast has steadily expanded its end-to-end electric vehicle ecosystem, encompassing manufacturing, distribution, charging infrastructure, aftersales services and battery recycling, with the Tamil Nadu facility playing a central role. The company’s distribution network is also scaling rapidly, with 24 dealerships currently operational across major cities and plans to expand to 35 by the end of the year.
With a sustained focus on innovation, sustainability and customer-centric design, VinFast aims to support India’s transition towards cleaner mobility solutions and contribute to a greener, more inclusive automotive future.