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Vietnam’s VinFast to Invest Additional 0 Million to Expand Indian Factory.jpg
Vietnamese electric vehicle maker VinFast will expand production at its Indian factory, adding manufacturing capacity for electric buses, electric scooters, and charging infrastructure. Pictured: a VinFast electric bus driving through the streets of Hanoi, Vietnam’s capital. (AFP)

Vietnam’s largest electric vehicle manufacturer, VinFast, will invest an additional 500million(approximatelyS647 million) in India to scale up production at its local factory, including increasing output of electric buses, electric scooters, and charging infrastructure, to support its growth plans.

In a statement issued Thursday, December 4, following the signing of a memorandum of understanding with the government of Tamil Nadu in southern India, VinFast said the state government would allocate approximately 200 hectares of land adjacent to VinFast’s existing facility to support the expansion.

Under the memorandum, the Tamil Nadu government pledged to assist VinFast with regulatory approvals and ensure seamless integration of essential infrastructure—including power supply, water, internal road connectivity, drainage, and waste management—to facilitate smooth implementation of the expansion. In return, VinFast committed to building dedicated workshops and production lines exclusively for electric buses and electric scooters.

VinFast’s factory in Thoothukudi, Tamil Nadu, began operations in July this year on a 160-hectare site equipped with internationally compliant production lines. Its initial annual capacity stands at 50,000 electric vehicles. The company plans to triple this capacity to 150,000 units within one year and double it again over the next three years.

Tamil Nadu’s Minister for Industries, T. R. B. Rajaa, said at the signing ceremony that this partnership would inject new momentum into Tamil Nadu’s—and India’s—green mobility strategy.

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