Vinfast will build its first manufacturing plant in Tamil Nadu, India
Vinfast will build its first manufacturing plant in Tamil Nadu, India: Company will invest ₹ 16,638 crore, expected to provide jobs to 3,500 people
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Vietnamese electric vehicle (EV) manufacturing company Vinfast signed an agreement on Saturday (January 6, 2024) to set up its first manufacturing plant in India. This company wants to enter India, the world's third-largest vehicle market.
According to the joint statement, Vinfast and the southern state of Tamil Nadu have agreed to work towards an investment of up to $2 billion (Rs 16,638 crore) with a commitment of $500 million, or about Rs 4,160 crore, for the first five years of the project. Is of.
The statement said that construction of the project's EV and battery manufacturing plant will start this year. This plant is expected to provide jobs to 3,000 to 3,500 people at the local level. Reuters reported on Wednesday that Vinfast will open its first manufacturing plant in India in Thoothukudi, Tamil Nadu, where it will make EV batteries.
VinFast, founded in 2017 and making EVs since 2021, has announced several EV growth plans overseas. The company was listed on Nasdaq in August 2023 and a month later the company first flagged off its Indian expansion plans.
Tamil Nadu's capital Chennai, known as the Detroit of Asia, and other districts host several EV companies. These include Indian two-wheeler manufacturers Ola Electric and Ather and China's BYD.
VinFast said the Tamil Nadu project is expected to develop into a first-class EV production hub in the region. Whose annual capacity will be up to 1,50,000 vehicles. Whereas the capacity of its main plant in Vietnam is 2,50,000. However, no information has been given in the joint statement about what the capacity of the battery facility will be.
Electric models accounted for about 2% of India's car sales last year, but the government is targeting 30% by 2030 and is working on a plan to attract EV companies.
The statement said that the Tamil Nadu government is committed to making clear land available for manufacturing facilities, uninterrupted power supply and other infrastructure support. Vinfast said it is also planning to develop a nationwide dealership network.
