Vietnamese electric car maker VinFast aims to spend $500 million to build an integrated plant in India and enter the world’s third-largest auto market.
The business said on Saturday that its memorandum of agreement with Tamil Nadu’s state government calls for a $2 billion investment without a timeline.
Construction of the 150,000-unit Thoothukudi complex is scheduled to begin this year. It should create 3,000–3,500 jobs.
Automotive giants BMW, Hyundai, and Renault-Nissan, as well as Chinese electric vehicle makers BYD and Indian electric two-wheeler makers Ather Energy and Ola Electric, manufacture in the southern Indian state. Ola Electric plans to list in Mumbai this year.
“We are pleased that VinFast will build its integrated EV facility in Tamil Nadu. In the statement, Tamil Nadu Minister of Industries Dr. Thallikotai Raju Balu Rajaa said VinFast will be a reliable economic partner and significant contributor to the state’s long-term development due to its strong capabilities and unwavering commitment to a sustainable future.
In addition to the production plant, the manufacturer wants to build a pan-India dealership network to serve the world’s third-largest four-wheeler market.
The MoU shows VinFast’s dedication to sustainable development and zero-emission mobility. Tran Mai Hoa, Deputy CEO of Sales and Marketing at VinFast Global, said investment in Tamil Nadu would benefit both sides economically and speed the green energy transformation in India and the region.
Since 2021, VinFast has made EVs in the U.S. and Canada, as well as Vietnam. The lossmaking company, frequently likened to Tesla, debuted on the Nasdaq in August via a SPAC agreement with Black Spade and announced its India entry in October.
VinFast invests in India to grow its market, but it struggles in its present markets. Last year, it slashed U.S. and Canadian positions and was criticized for the VF8 EV’s quality and safety. VinFast’s share price has decreased 81% to $7.02 since its IPO.
Since India wants 30% electrification by 2030, worldwide EV firms have been interested in it. Tata Motors is the country’s leading EV vehicle producer, although BYD and MG Motor are trying to expand with their EV models. Hyundai Motor has also begun selling EVs in India to meet demand. Tesla is also building a facility in Gujarat to join the market.
According to the government’s Vahan webpage, electric vehicles make up 0.25 percent of India’s 51 million automobile sales. The government has provided incentives and subsidies to boost the EV vehicle industry.
Its India transaction follows VinFast’s Saturday appointment of founder and major investor Pham Nhat Vuong as CEO.
