KEY HIGHLIGHTS
- VinFast to expand its Tamil Nadu facility to build electric scooters and electric buses
- New 200-hectare land allocation to support dedicated e-scooter manufacturing lines, boosting localisation and job creation
- VinFast aimimg to position its electric scooters as competitive mass-market offerings
Vietnamese EV manufacturer VinFast has taken a decisive step toward deepening its presence in India's rapidly growing clean-mobility space. The company has signed a fresh Memorandum of Understanding (MoU) with the Government of Tamil Nadu to expand its existing Thoothukudi facility, an upgrade that will pave the way for the first batch of locally manufactured VinFast electric scooters and electric buses. For a brand entering one of the world's largest two-wheeler markets, this move signals a clear long-term commitment to India's electric future. Read on to find out all the details about this latest revision, but before that, make sure to join the 91wheels WhatsApp Community, specifically curated for petrolheads like us to keep up with the latest news and automotive updates.
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A Strategic Push For VinFast Electric Scooters & Buses
Under the new agreement, Tamil Nadu will allocate nearly 200 hectares (500 acres) of additional land adjoining VinFast's current site inside the SIPCOT Industrial Park. This expanded footprint will house new production lines dedicated to VinFast electric scooters, electric buses, component assembly, and auxiliary testing facilities. The state government has also committed support for essential infrastructure, roads, electricity, water supply, drainage systems, and waste-management services, ensuring VinFast's expansion proceeds without bottlenecks. For VinFast, this marks the second phase of its previously announced USD 2 billion investment plan, with USD 500 million earmarked specifically for the upcoming electric two-wheeler and bus operations. With India's EV two-wheeler market projected to grow exponentially by 2030, this investment aims squarely at capturing early demand in affordable, urban-friendly electric mobility.
Mr. 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 lineup 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 localization 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 favorable 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 its flourishing ecosystem provides jobs for Tamil Nadu".
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Boosting Local Manufacturing, Jobs, & EV Ecosystem Development
VinFast's current Thoothukudi facility already covers 400 acres and houses internationally benchmarked production lines capable of building 50,000 electric cars annually, with future scalability up to 150,000 units. The newly announced expansion builds on this foundation, enabling the company to add electric bus and electric scooter manufacturing to its portfolio. This growth is expected to drive deeper localisation of EV components, create fresh employment opportunities, and introduce skill-development programs tailored for advanced EV manufacturing. The move will also strengthen the supplier ecosystem surrounding Tamil Nadu.
Verdict
With the Tamil Nadu expansion, VinFast is making its most ambitious move yet in India, one that places electric two-wheelers at the heart of its strategy. In a market dominated by players like Ather, TVS, Bajaj Chetak, and Ola Electric, VinFast's entry could introduce fresh competition, global expertise, and strong localisation. For India, this development represents more than just another EV manufacturer setting up shop. It signals growing global confidence in the country's transition toward sustainable mobility, and marks the beginning of VinFast's deeper commitment to shaping that journey.
