VinFast, the electric vehicle arm of Vietnamese conglomerate Vingroup, will build a $500 million EV facility in Tamil Nadu state of India, towards a total investment of $2 billion.
In a statement last Saturday, Vingroup said VinFast and the government of Tamil Nadu announced a landmark partnership in a memorandum of understanding (MoU) to drive the development of green transportation in India. The first phase of $500 million will span over five years from the commencement date.
This move indicates a significant step in VinFast’s expansion into the world’s third-largest vehicle market, according to the statement. The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market.
This initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion, according to Vingroup.
The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is anticipated to generate 3,000-3,500 jobs. In addition to creating jobs and improving the skills of the local workforce, VinFast is dedicated to fostering gender equality and offering career advancement opportunities for the community.
Situated in Thoothukudi city of Tamil Nadu state, the project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units. Construction of the plant is anticipated to begin in 2024. This project is set to lay a strong foundation for economic growth in Tamil Nadu and India as a whole.
Besides the economic benefits, the project will also pave the way for green transportation development, targeting 30% of newly registered private cars to be electric. This aligns with Tamil Nadu’s initiatives to minimize carbon emissions in the transportation sector.