Published On:February 26 2024
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"VinFast Initiates Construction of ₹4,000 Crore Electric Vehicle Plant in Tamil Nadu, Vietnam's Entry into Indian Market"

Vietnam-based electric vehicle manufacturer VinFast Auto Ltd has embarked on the construction of a state-of-the-art electric vehicle manufacturing facility in Thoothukudi, Tamil Nadu, marking a significant investment of ₹4,000 crore over the next five years.

The groundbreaking ceremony took place on Sunday, with Tamil Nadu Chief Minister M K Stalin inaugurating the commencement of construction alongside state ministers, government officials, and VinFast's top management.

Chief Minister M K Stalin hailed the investment as a milestone for southern Tamil Nadu, enhancing the region's reputation as a thriving automotive and EV manufacturing hub in India.

VinFast's decision to establish its EV factory in Tamil Nadu was attributed to the state's skilled workforce, favorable EV policies, and existing manufacturing ecosystem, according to Pham Sanh Chau, CEO of VinFast India.

Spanning across a 400-acre site within the Tamil Nadu Industrial Promotion Corporation (SIPCOT) industrial park in Thoothukudi, the new facility is anticipated to create employment opportunities for 3,000 to 3,500 individuals.

The manufacturing plant is projected to have an annual capacity of up to 150,000 units, with a focus on electric cars and two-wheelers. Additionally, VinFast intends to develop a widespread dealer network to bolster its brand presence, emphasizing competitive pricing and exceptional after-sales service.

While primarily targeting the Indian market, the EV factory aims to cater to demand from South Asia, the Middle East, and Africa.

VinFast has also petitioned the Central government for a temporary reduction in import duties on its EVs to facilitate market penetration until the factory becomes fully operational. This aligns with similar appeals made by leading EV manufacturer Tesla for a complete exemption from import duties on its vehicles.

India holds strategic importance in VinFast's global expansion strategy, with the Tamil Nadu facility complementing existing manufacturing sites in Vietnam and the United States, as well as planned operations in Indonesia.

The investment underscores VinFast's commitment to leveraging India's status as the world's third-largest automobile market while reinforcing its stature as a global player in the automotive industry.

HBL





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