According to Reuters, Vietnamese electric vehicle manufacturer VinFast recently signed an agreement outlining plans to set up its first manufacturing plant in India, aiming to enter the world's third-largest automotive market.
In a joint statement, VinFast and the Tamil Nadu state in southern India announced their collaboration on a project with an investment of up to $2 billion, with plans to allocate $500 million in the first five years. The statement mentioned that construction of the electric vehicle and battery manufacturing plant is expected to commence this year, creating 3,000 to 3,500 local jobs.
VinFast stated that the Tamil Nadu project would have an annual capacity of up to 150,000 units and is anticipated to evolve into a premier electric vehicle production center in the region, while its main factory in Vietnam has an annual capacity of 250,000 units. However, the company's statement did not specify the capacity of the battery plant.
The company noted in its statement that the Tamil Nadu government has committed to providing land, uninterrupted power supply, and other infrastructure for the manufacturing plant. VinFast also mentioned plans to establish a nationwide dealer network in India.
Founded in 2017, VinFast began producing electric vehicles in 2021 and has since announced several overseas electric vehicle expansion projects. The company went public on Nasdaq in August of last year and unveiled its expansion plans for India a month later. Last week, Reuters, citing sources, reported that VinFast would establish its first factory in India in the city of Thoothukudi in Tamil Nadu to produce electric vehicle batteries.
In 2021, electric vehicles accounted for around 2% of car sales in India, but the Indian government aims to achieve a 30% share by 2030 and is formulating plans to attract electric vehicle manufacturers.
