VinFast Auto has, in an official communication, announced that it will break ground at its integrated electric vehicle (EV) manufacturing site in Thoothukudi, Tamil Nadu on February 25, 2024.
On January 6, 2024, VinFast and the government of Tamil Nadu signed a Memorandum of Understanding (MoU) for an intended commitment of around Rs 425 crore for the first phase of the integrated EV facility, spanning five years from the commencement date. This move is a significant milestone in VinFast's global expansion strategy of venturing into one of the world's fastest growing major economies and its burgeoning EV market.
That the ceremony of the EV manufacturing plant comes just over a month after the announcement of the MoU with the Tamil Nadu government affirms VinFast's strong determination and rollout speed in its global expansion plan.
VinFast India plant details
VinFast’s integrated EV manufacturing facility in Tamil Nadu is projected to generate about 3,000 to 3,500 local job opportunities. The VinFast Tamil Nadu project aims to develop into a top-notch electric vehicle production hub in the region, with an annual capacity of up to 1,50,000 units at full capacity. This facility will not only cater to development objectives in the Indian market, but also serve VinFast's export programme for South Asian, Middle Eastern and African countries.
Additionally, the project will catalyse green transportation development, which is a key agenda for the government of India and state governments to curtail carbon emissions in the transport sector, targeting 30 percent of newly registered private cars to be electric.
Meanwhile, VinFast, which announced its fourth-quarter and full calendar-year 2023 results yesterday, has targeted sales of 1,00,000 EVs in 2024. Having entered the US market, it is looking to strengthen its ability to compete effectively in other markets to build scale, especially untapped, volume-driven markets like India and Indonesia.
Hormazd Sorabjee
Anurag Chaturvedi
