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Vietnamese electric vehicle manufacturer VinFast has confirmed that it will produce electric scooters and electric buses in India as part of its expanding presence in the country. The company plans to manufacture these products locally in order to offer them at competitive prices and strengthen its position in the growing Indian electric mobility market.
The automaker has signed a memorandum of understanding (MoU) with the Government of Tamil Nadu to invest USD 500 million to expand its production facility in Thoothukudi. The announcement marks the beginning of the second phase of VinFast's USD 2 billion commitment to the state. The company had already allocated USD 500 million in the first phase of its investment plan.
VinFast will acquire nearly 500 acres of land next to its existing 400 acre facility in the SIPCOT Industrial Park. The additional land will be used to set up specialised workshops and dedicated manufacturing lines for the upcoming electric bus and electric scooter ranges. The company has not yet disclosed the production capacity it aims to achieve in these new segments.
Pham Sanh Chau, Vingroup Asia chief executive officer and VinFast Asia chief executive officer, said "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."
He added that the initiative is expected to create employment opportunities and strengthen localisation efforts while building capabilities within the regional workforce. Chau said "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."
This article was originally published by the 
