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Vinfast to build integrated electric vehicle facility in Tamil Nadu with total investment of USD 2 billion, ET Auto

<p>Construction of the plant is anticipated to begin in 2024 and the company said the plan to expand into India aims to seize growth opportunities in what it deemed the 'world's most populous nation and rapidly expanding EV market.'</p>
Construction of the plant is anticipated to begin in 2024 and the company said the plan to expand into India aims to seize growth opportunities in what it deemed the ‘world’s most populous nation and rapidly expanding EV market.’

Vietnamese electric vehicle (EV) manufacturer VinFast on Saturday said it will work towards building an integrated EV facility in the state with a total investment of up to USD 2 billion.

The company, in a statement said that it has committed USD 500 million for the first phase of the project and that the total outlay will span five years from the commencement date.

The company is signing a Memorandum of Understanding (MoU) with the Tamil Nadu state government for the establishment of an EV manufacturing facility in Thoothukudi which it said aimed to to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units, something ET had reported on Saturday. The formal exchange of the MoU is likely to happen at the Tamil Nadu Global Investors Meet (GIM) on Sunday.

“The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emission transportation future,” Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global said in a statement. “We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties, but will also help accelerate the green energy transition in India and the region.”

Construction of the plant is anticipated to begin in 2024 and the company said the plan to expand into India aims to seize growth opportunities in what it deemed the ‘world’s most populous nation and rapidly expanding EV market.’ It added that this initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.

The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is anticipated to generate approximately 3,000 – 3,500 employment opportunities locally. In addition to creating jobs and improving the skills of the local workforce, VinFast remains dedicated to fostering gender equality and offering career advancement opportunities for the community.

“We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility. Possessing robust capabilities and unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development,” TN Industries Minister TRB Rajaa said.

VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. The Tamil Nadu governme t said it is committing to providing cleared land for the manufacturing facilities, uninterrupted power supply, and other infrastructure support on a best-effort basis while also continuing to discuss opportunities for charging stations to steer toward a clean mobility future.

“In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country,” the company added.

  • Published On Jan 6, 2024 at 06:51 PM IST

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