Vietnam-based electric vehicle maker VinFast has commenced work on building its Rs 16,000-crore EV manufacturing facility at Thoothukudi in Tamil Nadu.  The company broke ground on 25 February, 2024, as the State Chief Minister MK Stalin set off the construction work in the presence of State Ministers, senior government officials and top management of VinFast.

The new factory will come up on a 400-acre site located at the industrial park of Tamil Nadu Industrial Promotion Corporation (SIPCOT) in Thoothukudi. The construction of the first phase of the company's integrated EV hub may see Rs 4,000 crore of investment initially and will create more than 10,000 jobs. The Thoothukudi project aims to evolve into a electric vehicle (EV) production hub in the region, with an annual capacity of up to 150,000 units.

At present, Tamil Nadu has over 70 percent of all electric two-wheelers and 40 percent of all electric four-wheelers sold in India being manufactured in the state. This marks a pivotal moment in establishing an industrial cluster in South Tamil Nadu. The upcoming factory will lead to a robust vendor ecosystem, enabling the VinFast factory with a network of suppliers and ancillary industries.

The state's talent pool and skilling of people for EV and battery tech under the Skill Development Corporation, will enable the company to hire talents trained under Nan Mudhalvan scheme.

VinFast has already proposed a two-year reduction in the import duty on its cars. The Central government is still considering the request by the company.