VinFast, Vietnam's prominent electric vehicle (EV) manufacturer, has entered a partnership with the Tamil Nadu State Government through a Memorandum of Understanding (MoU). The collaboration, involving a total investment of up to $2 billion, with an initial commitment of $500 million for the first phase, marks a significant move in the vehicle maker’s expansion into India, the world's third-largest vehicle market.
The strategic plan aims to capitalise on growth opportunities in India's burgeoning EV market, aligning with the OEM’s global expansion strategy. The integrated electric vehicle facility in Thoothukudi, Tamil Nadu, is expected to generate 3,000 to 3,500 local employment opportunities and become a prominent production hub with an annual capacity of up to 150,000 units.
The project, scheduled to commence construction in 2024, will not only contribute to economic growth but also foster green transportation development. The State Government targets 30% of newly registered private cars to be electric, aligning with efforts to reduce carbon emissions in the transportation sector.
Tran Mai Hoa, Deputy CEO, Sales and Marketing, VinFast Global, expressed the company's commitment to sustainable development, emphasising the significant economic benefits and the acceleration of the green energy transition in India and the region.
Dr TRB Rajaa, Minister of Industries, Government of Tamil Nadu, highlighted VinFast's role as a powerful accelerator towards the state's green vision and economic development.
This project signifies VinFast's largest investment in Tamil Nadu to date, fostering mutual economic growth and strengthening the Comprehensive Strategic Partnership between Vietnam and India. In addition to manufacturing facilities, the automaker plans to establish a nationwide dealership network to enhance brand presence and connect with customers across the country, contributing to its global aspirations as a leading electric vehicle manufacturer.
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