VinFast Auto has officially communicated that it will commence construction at its integrated electric vehicle (EV) manufacturing site in Thoothukudi City, Tamil Nadu, on February 25, 2024.
On January 6, 2024, VinFast and the government of Tamil Nadu signed a Memorandum of Understanding (MoU) with an intended commitment of $500 million for the first phase of the integrated EV facility, spanning five years from the start date. This marks a significant milestone in VinFast’s global expansion strategy, tapping into one of the world’s fastest-growing major economies and its burgeoning EV market.
The groundbreaking ceremony for the EV manufacturing plant occurring just over a month after the MoU announcement with the Tamil Nadu government underscores VinFast’s strong determination and swift execution in its global expansion plan.
VinFast’s integrated EV manufacturing facility in Tamil Nadu is expected to create approximately 3,000 to 3,500 local job opportunities. The VinFast Tamil Nadu project aims to establish itself as a premier electric vehicle production hub in the region, with an annual capacity of up to 150,000 units at full capacity. This facility will not only support development goals in the Indian market but also bolster VinFast’s export program in South Asian, Middle Eastern, and African countries.
Moreover, the project will drive green transportation development, aligning with the Indian government’s agenda of reducing carbon emissions in the transport sector, with a target of 30% of newly registered private cars being electric.
Meanwhile, VinFast, which disclosed its fourth-quarter and full calendar-year 2023 results yesterday, has set a sales target of 100,000 EVs in 2024. Expanding into the US market, it aims to enhance its competitive position in other markets, especially untapped, volume-driven markets like India and Indonesia.