VinFast Auto Ltd, the Vietnamese electric vehicle (EV) manufacturer, has unveiled plans to establish an integrated electric vehicle facility in Tamil Nadu as part of its strategy to enter the world’s third-largest automobile market.
The company is set to invest USD 2 billion in the state, with an initial commitment of USD 500 million for the project’s first phase. The investment is projected over five years from the commencement of the project, marking a significant move for VinFast in expanding its presence in the Indian EV market.
VinFast Auto Ltd is on the verge of signing a Memorandum of Understanding (MoU) with the Tamil Nadu state government for the establishment of an electric vehicle manufacturing facility in Thoothukudi. The company envisions this facility to evolve into a leading hub for electric vehicle production in the region, with a capacity to manufacture up to 150,000 units annually. The official signing of the MoU is anticipated during the Tamil Nadu Global Investors Meet (GIM), scheduled from January 7 to 8 this year.
“The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emission transportation future. We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties, but will also help accelerate the green energy transition in India and the region,” Tran Mai Hoa, Deputy CEO of Sales and Marketing, at VinFast Global said as per ET Auto.
The company stated that it plans to expand into India to take advantage of growth opportunities in what it called the “world’s most populous nation and rapidly expanding EV market.” Furthermore, construction on the plant is expected to start anytime in 2024. The Vietnamese EV giant went on to say that this programme is an essential component of VinFast’s plan to fortify its supply chain and forge a solid foothold in important markets in preparation for international growth.
It is projected that the construction of VinFast’s integrated electric vehicle facility in Tamil Nadu will create between 3,000 and 3,500 new jobs in the state. Apart from generating employment opportunities and enhancing the competencies of the nearby labour force, VinFast is committed to promoting gender parity and providing prospects for professional growth to the community.
Additionally, VinFast’s green transport development project is the company’s third manufacturing project and the biggest investment in Tamil Nadu history. The Tamil Nadu government has stated that it will provide cleared land for manufacturing facilities, uninterrupted power supply, and other infrastructure support on a best-effort basis, while also discussing charging station opportunities to steer towards a clean mobility future.
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