VinFast to Invest USD 500 Mn to Expand Tamil Nadu Plant to Enter Electric Buses and E-Scooters Segment
VinFast has signed an MoU with the Tamil Nadu government to secure about 200 hectares at SIPCOT Industrial Park in Thoothukudi for expanding its existing facility, where it plans to produce electric buses, e-scooters and related EV infrastructure as part of a USD 500 million scale-up.
December 06, 2025. By Mrinmoy Dey
Under the MoU, the Government of Tamil Nadu will allocate approximately 500 acres (around 200 hectares) of land adjacent to VinFast’s existing facility in Thoothukudi. The state will also provide support in securing required permits and in establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management, the company said in a statement.
As the second phase of its existing USD 2 billion commitment, VinFast will invest USD 500 million in Thoothukudi to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations.
For VinFast’s proposed USD 500 million investment, the Government of Tamil Nadu will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the State’s prevailing regulations and relevant policies, it said.
With the signing of this MoU, VinFast takes another step forward in strengthening its manufacturing readiness in the Indian market. The initiative is also expected to increase supply chain localisation, create additional employment opportunities, and support workforce skill development in the region, the company stated.
The existing Thoothukudi facility covers 400 acres (160 hectares) and is equipped with internationally standardised production lines. It has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units.
Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated, “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. 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.”
Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu, 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 e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and ensuring favourable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing ecosystem provides jobs for Tamil Nadu.”
Since entering the Indian market, VinFast has continuously expanded its comprehensive EV ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services and battery recycling, with the Tamil Nadu plant being an important part of this ecosystem. At the same time, the company’s distribution network is rapidly growing, with 24 dealers already operating in major cities and a target of reaching 35 by the end of the year, the company stated.
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