VinFast to expand Tamil Nadu plant for e-buses and e-scooters production Vietnam’s VinFast has taken a significant step to strengthen its presence in India by signing a new agreement with the Tamil Nadu government.

Under the memorandum of understanding (MoU), the state will allocate around 200 hectares of land adjacent to VinFast's existing facility in Thoothukudi’s SIPCOT Industrial Park. This land will support the company’s USD two billion expansion plan, enabling dedicated production lines for electric buses, e-scooters, and charging equipment. Industries Minister TRB Rajaa emphasised that the project would accelerate Tamil Nadu’s clean-transport initiatives and create local jobs. “The government is committed to ensuring favorable conditions throughout the implementation process,” he said.

VinFast’s proposed USD 500 million investment qualifies for incentives under the state’s industrial policy. The expanded Thoothukudi plant will also help VinFast meet diverse customer needs while boosting localisation efforts. CEO Pham Sanh Chau highlighted Tamil Nadu’s strategic role in VinFast’s global growth and its plans for a significant production increase.