VinFast and Tamil Nadu Ink $500 Million Deal for EV Manufacturing in Thoothukudi

VinFast has signed a major MoU with the Tamil Nadu government to secure 500 acres of land in the Sipcot Industrial Park at Thoothukudi, paving the way for a large-scale expansion that will extend its EV portfolio beyond cars to electric buses and e-scooters, as per the news reports. 

Expansion Plan and New Investment 

The MoU includes allocating approximately 500 acres adjacent to VinFast’s existing 400-acre facility. This expansion is expected to be part of an additional $500 million 2nd-phase investment, complementing the previous $500 million already invested, as VinFast moves toward its cumulative $2 billion commitment in India.  

The new area will support manufacturing, assembly, testing and other operations for electric buses and e-scooters. 

Pham Sanh Chau, CEO of Vingroup Asia, said, “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 e-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.” 

Government Support and Infrastructure Boost 

The Tamil Nadu government will back the expansion by providing support to obtain necessary permits and ensuring infrastructure such as electricity, water, internal roads, drainage and waste management is in place.  

move is expected to boost local supply chain participation and accelerate workforce development. 

Strengthening India Strategy and EV Ecosystem 

VinFast’s existing Thoothukudi plant has a capacity of 50,000 EVs, which is being expanded to 150,000 units. The company aims to develop Tamil Nadu as a strategic manufacturing hub within its global network.  

Alongside production, the brand continues to expand its EV ecosystem, including charging, after-sales services and battery recycling. The distribution network now includes 24 dealerships, targeting 35 outlets by year-end. 

Read More: VinFast Targets 2026 for India's Electric 2-Wheeler Market Entry! 

Conclusion 

With this 500-acre expansion and fresh investment, VinFast is deepening its long-term commitment to India, broadening its EV portfolio and strengthening its role in the country’s green mobility journey. The partnership also positions Tamil Nadu as a key hub in the company’s global electric vehicle strategy. 

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