[Update] VinFast To Pump In $500 Mn To Build E2W Manufacturing Base In Tamil Nadu

Update | December 4, 22:00 IST 

Vietnam-based VinFast has now signed an MoU with the Tamil Nadu government to expand its Thoothukudi facility, marking an extension of its India roadmap. 

The MoU would see the Government of Tamil Nadu allocate approximately 500 acres of land adjacent to its existing facility in Thoothukudi. The state will also provide support in securing required permits and in establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management.

“As the second phase of its existing $2 Bn commitment, VinFast will invest $500 Mn in Thoothukudi to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations,” VinFast said.

The expansion will take its Thoothukudi site to 900 acres in total and support VinFast’s plan to scale its current annual production capacity from 50,000 units to 1.50 Lakh. 

Besides the MoU announcement, VinFast also shared its target to grow its distribution network to 35 dealerships by the end of the year from 24 dealers already operating in major cities as of now. 

Original| December 1, 15:02 IST 

Vietnam-based EV major VinFast is set to enter the burgeoning electric two-wheeler (E2W) market in India after the launch of its EV cars, VF7 and VF6, earlier this year. 

The company plans to launch its E2Ws next year, VinFast Asia CEO Pham Sanh Chau said, according to The Indian Express. 

“We are working with partners to understand the requirements for the Indian market before the launch. A feasibility study is currently underway, and our dealer network has also shown keen interest in two-wheelers,” Chau said. 

The company has a wide portfolio of E2Ws in Vietnam, with models named VeroX, Feliz, Evogrand, and EVONEO, among others. The company’s price range for E2Ws sold in Vietnam starts at INR 60.5K.

The company is likely to launch two of these models in the Indian market, which is dominated by Indian conglomerates like Bajaj Auto and TVS Motor, while new-age tech giants Ather Energy and Ola Electric also have a healthy market share in the growing segment.

Meanwhile, Vinfast also plans to launch its ride-hailing operations in India in the first quarter of 2026, the report said. Vingroup, the parent of VinFast, operates EV-only ride-hailing services under the Green and Smart Mobility (GSM) brand in Vietnam and some other global markets. 

VinFast seems to be positioning itself to capture the space vacated by the shuttered EV ride-hailing startup BluSmart. The segment currently has startups like Evera, Shoffr and Snap-E Cabs, while the likes of Ola and Uber India are also inducting EVs into their fleets. 

The Vietnamese company is also in talks with governments of Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, and Uttar Pradesh to launch electric buses in the country. It is aiming to replicate in India the full mobility ecosystem it operates in Vietnam. 

The India push comes after VinFast’s debut of its electric cars earlier this year and the inauguration of its assembly facility in Tamil Nadu’s Thoothukudi in August. VinFast has committed phased investments of up to INR 16,000 Cr (about $2 Bn) to establish localised manufacturing and product development capabilities, a move that sharply contrasts with the asset-light, import-led approach taken by Elon Musk-led Tesla. 

VinFast’s plant will initially produce 50,000 vehicles annually. It plans to scale this to 1.5 Lakh units once fully operational.

Backed by the growing adoption of EVs, India’s EV market is poised to become a $132 Bn industry by 2030.