VinFast has signed a Memorandum of Understanding with the Tamil Nadu government to invest 500 million USD for expanding its electric vehicle manufacturing in Thoothukudi, Tamil Nadu. With the new investment, it will support VinFast to create assembly lines for e-buses and e-scooters, expanding beyond the company’s existing EV car operations.
As part of the agreement, the state will allocate around 500 acres in the SIPCOT Industrial Park near VinFast’s current facility. The government will also assist with regulatory approvals and provide essential infrastructure such as power supply, internal roads, water systems and waste management.
This expansion forms the second phase of VinFast’s larger India strategy, following its initial investment of over ₹2,000 crore. The company’s first Indian plant, spread across 400 acres, is already scaling up electric car manufacturing, and aims to grow its capacity from 50,000 units to 1.5lakh units annually.
The new facility will enable VinFast to manufacture, assemble and test electric buses and scooters, supporting its aim to build a complete EV ecosystem in India. The company says the project will contribute to job creation, skill development and localisation of EV components in Tamil Nadu. The move also strengthens Tamil Nadu’s position as a fast-growing EV manufacturing hub in the region.
