Vietnam’s electric vehicle (EV) manufacturing company, VinFast, has recently signed an agreement to establish its first manufacturing plant in India on Saturday, January 6, 2024. The company aims to enter India, the world’s third-largest vehicle market, with a substantial investment.
According to a joint statement, VinFast, along with the southern state of Tamil Nadu, has agreed to collaborate on a $500 million commitment for the construction of a plant dedicated to EV and battery manufacturing. The commitment extends up to $2 billion (approximately INR 16,638 crores) in total investment over the first five years.
Expectation of Providing Jobs to 3,500 Locals at Local Level
It is reported that the construction of the EV and battery manufacturing plant is set to begin this year. The plant is expected to provide employment opportunities to 3,000 to 3,500 local residents. Reuters reported earlier that VinFast plans to open its first production plant in Tamil Nadu, where it will manufacture EV batteries.
VinFast, established in 2017 and producing EVs since 2021, has announced numerous EV expansion plans internationally. The company was listed on Nasdaq in August 2023 and, within a month, revealed its expansion plans for the Indian market.
Chennai, the capital of Tamil Nadu, known as Asia’s Detroit, is already home to several EV companies, including Indian two-wheeler manufacturers Ola Electric and Ether, as well as China’s BYD.
Tamil Nadu Plant to Have Annual Capacity of 150,000 Vehicles
VinFast has stated that the Tamil Nadu project aims to develop as a first-tier EV production hub in the region. The plant’s annual capacity is expected to reach 150,000 vehicles, while the main plant in Vietnam has a capacity of 250,000 vehicles. However, there is no information provided in the joint statement regarding the battery facility’s capacity.