- | 11:47 am
VinFast begins building EV plant in Tamil Nadu
The plant, which will be built with an initial investment of $500 million, will roll out up to 150,000 units annually once completed
Vietnamese electric vehicle maker VinFast broke ground at its integrated electric vehicle manufacturing facility in Tamil Nadu’s Thoothukudi on Sunday, nearly 50 days after it signed an agreement with the state government.
The foundation stone was laid by Tamil Nadu chief minister M.K. Stalin.
Spanning 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate, the plant will have an annual capacity of up to 150,000 units once it becomes operational.
VinFast and the Tamil Nadu government announced a partnership in a memorandum of understanding (MoU) signed during the Tamil Nadu investors summit on 6 January.
VinFast committed a total investment of up to $2 billion, with an intended commitment of $500 million for the first phase of the project over the next five years.
Tamil Nadu industries minister T. R. B. Rajaa said VinFast’s entry into India reaffirms the state’s progressive industrial policies and its role as a global automotive innovation and manufacturing hub.
“Tamil Nadu will match VinFast’s ambitious growth plans in the country and is committed to making zero-emission mobility widely accessible. We believe the project will substantially contribute to the local economic advancement, job creation, and technical skill development of the people of Tamil Nadu,” he said.
The company estimates that its integrated electric vehicle facility in Tamil Nadu will generate nearly 3,500 local job opportunities.
VinFast India chief executive Pham Sanh Chau said the company’s groundbreaking ceremony for the plant is a significant stride towards sustainable and green mobility in India.
“By establishing an integrated electric vehicle facility, the company’s commitment to job creation, green transportation, and strategic partnerships solidifies VinFast’s position as a major player in the electric vehicle industry,” he said.
“This milestone strengthens the bonds between the robust economies of Vietnam and India, and underscores VinFast’s dedication to a zero-emission transportation future, setting the stage for economic growth, innovation, and environmental sustainability in the region,” he added.
Vinfast’s plan to expand into India aims to seize growth opportunities in the world’s most populous nation and a rapidly growing EV market. Through India, the company plans to establish a strong presence in key markets and strengthen its supply chain for global expansion.
In addition to the manufacturing facilities, VinFast plans to establish a nationwide dealership network to build a strong brand presence and swiftly connect with customers across the country.
Established in 2017, VinFast owns an EV manufacturing complex in Vietnam and plans to open plants in the US and Indonesia.
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