VinFast Auto has announced that it will break ground at its integrated electric vehicle (EV) manufacturing site in Thoothukudi City, Tamil Nadu on February 25, 2024.
VinFast and the Tamil Nadu government signed a Memorandum of Understanding (MoU) on January 6, 2024. The partnership intends to contribute $500 million for the integrated EV facility’s first phase over a five-year period starting on the date of commencement. This action marks a critical turning point in VinFast’s worldwide expansion plan as it enters one of the main economies with the highest rate of growth in the world and its expanding electric vehicle (EV) industry.
A little more than a month after the Tamil Nadu government announced the Memorandum of Understanding, VinFast’s EV manufacturing facility groundbreaking ceremony confirms the company’s unwavering commitment and rapid deployment of its worldwide development strategy.
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 150,000 units in its full capacity. This facility will not only cater to development objectives in the Indian market, but also serve VinFast’s export programme in South Asian, Middle Eastern and African countries.
Additionally, the project will catalyze green transportation development which is key agenda for the government of India and the States of curtailing carbon emissions in the transport sector, targeting 30% 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 100,000 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.
