VinFast Expands Global Reach: Inking Milestone Agreement for EV Manufacturing in India
On Saturday, Vietnamese electric vehicle (EV) manufacturer VinFast signed a pivotal agreement to establish its first manufacturing facilities in India, strategically targeting the world’s third-largest vehicle market.
In collaboration with the southern state of Tamil Nadu, VinFast committed to a significant investment of up to $2 billion for the project, with an initial allocation of $500 million over the first five years. The ambitious endeavor is set to commence construction this year, featuring the establishment of EV and battery manufacturing plants and anticipating the creation of 3,000 to 3,500 jobs locally.
Thoothukudi to Host Debut Manufacturing Facility: Focus on EV Batteries
Earlier reports from Reuters hinted at VinFast’s inaugural Indian manufacturing facility being situated in Thoothukudi, Tamil Nadu, with a specific focus on EV battery production. Established in 2017, VinFast entered the EV market in 2021, consistently unveiling plans for international expansion. The company made its Nasdaq debut in August, signaling its intent for Indian expansion a month later.
Tamil Nadu’s capital, Chennai, often referred to as the “Detroit of Asia,” already hosts various EV players, including Indian entities like Ola Electric and Ather, alongside China’s BYD (002594.SZ).
VinFast envisions the Tamil Nadu project evolving into a premier EV production hub in the region, targeting an annual capacity of up to 150,000 vehicles. This stands in comparison to the 250,000 vehicles produced at its main facility in Vietnam. The joint statement did not specify the capacity of the battery facility.
Despite electric models constituting only around 2% of India’s car sales in the past year, the national government aims to elevate this figure to 30% by 2030, actively working on schemes to attract EV manufacturers.
In support of VinFast’s initiative, the Tamil Nadu government has committed to providing cleared land for the manufacturing facilities, ensuring an uninterrupted power supply, and extending other essential infrastructure support, as outlined in the joint statement.
VinFast also envisions establishing a nationwide dealership network in India as part of its strategic expansion plans. This move underscores the company’s commitment to creating a lasting impact in the Indian EV market.
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