Following an agreement signed in January to bring its EVs to India, VinFast announced it is set to break ground on a new facility in Tamul Nadil as part of a $500 million commitment to erect phase one in the country.
Although speedy Vietnamese EV automaker VinFast did not achieve its 2023 delivery targets, its progress has picked up as it continues its ambitious expansion to new global markets, including the US and Europe.
With multiple new models like the VF 3 and eventually an all-electric pickup based on the Wild concept unveiled at CES, VinFast is showing no signs of slowing down and continues to wield the power of its parent company, VinGroup’s massive checkbook.
In January 2024, VinFast signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu in India, committing $500 million toward further global expansion to help decarbonize a heavily populated country.
Today, VinFast announced it is ready to break ground in India, kicking off a five-year process to erect its first EV production facility on its land… and that’s just phase one.
VinFast to break ground en route to EV deliveries in India
Later this week, VinFast will break ground in Thoothukudi City in the Tamil Nadu region of India, moving quickly after signing its MoU with the State Government a month and a half ago.
The Vietnamese automaker says the key goal of the new EV production facility is to curb carbon emissions in the transport sector of India. The country’s government is targeting 30% of new registered private vehicles to become electric and now hopes a large chunk of those will be VinFast models.
We’re certain VinFast is hoping for that too.
When the groundbreaking begins, VinFast expects phase one of the production facility construction to span five years and eventually bring 3,000 to 3,500 new jobs to India. At full capacity, VinFast anticipates the Tamil Nadu plant to produce up to 150,000 EVs per year.
In addition to providing zero-emissions vehicles to India, VinFast expects the new facility to produce branded vehicles for other regions including South Asia, the Middle East, and African countries. The official groundbreaking ceremony is scheduled for February 25, 2024.
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