The company has proposed to invest USD 500 million for developing workshops and production lines for e-scooters at the existing Thoothukudi factory
Recently, we reported to you that Vinfast, the Vietnam-based EV-only brand, will start retailing electric scooters in the Indian market. Now, the company has signed a Memorandum of Understanding (MOU) with the state government of Tamil Nadu for 200 hectares of land allocation in the SIPCOT Industrial Park in Thoothukudi. Vinfast will use this 500 acres of land adjacent to its existing facility in Thoothukudi to develop workshops and production lines for e-scooters, including manufacturing, assembly, testing and other related operations.
Besides electric scooters, Vinfast is also planning to introduce electric buses in the Indian market. It also intends to improve the charging infrastructure in the country by setting up charging stations. Presently, the Thoothukudi facility has an initial annual production capacity of 50,000 electric vehicles and it is being expanded to 150,000 units.
As part of the MoU, Tamil Nadu government will help Vinfast in securing required permits and in establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management. The Vietnamese electric brand is investing USD 500 million in Thoothukudi for the development of new production lines. This investment is a part of the second phase of its existing USD 2 billion commitment.
The Tamil Nadu government will also provide Vinfast with all applicable incentives, financial support measures, and statutory exemptions in accordance with the State’s prevailing regulations and relevant policies. This USD 500 million investment will increase supply chain localization, create additional employment opportunities, and support workforce skill development in the state.
Mr. Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated: “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce. VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”
Vinfast is gradually increasing its footprint across the country. Currently, it has 24 dealerships in major Indian cities which are likely to increase to 35 by the end of the year. The existing Thoothukudi factory is spread across 400 acres (160 hectares) and it has globally standardized production lines. The electric scooters are likely to debut in Q2 2026 in India.
