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VinFast to build electric vehicle facility in Tamil Nadu, India

VinFast, Vietnam’s electric vehicle (EV) manufacturer, has entered into a partnership with the Tamil Nadu State Government in India, as per a Memorandum of Understanding (MoU) announced on January 6, 2024. The collaboration aims to promote green transportation in India, the third-largest global vehicle market with a total investment of up to USD 2 billion. The initial phase of the project will see a commitment of USD 500 million over five years.

VinFast plans to tap into India’s growing EV market and capitalize on opportunities in the densely populated nation to establish a robust presence in strategic markets and enhance its global supply chain. As per the official statement, the integrated electric vehicle facility in Tamil Nadu, situated in Thoothukudi, is expected to create 3,000 – 3,500 employment opportunities locally. The project, with an annual capacity of up to 150,000 units, is set to commence construction in 2024, contributing to economic growth in Tamil Nadu and India. Also, the project aims to promote green transportation, targeting 30% of newly registered private cars to be electric, which aligns with the state government’s efforts to reduce carbon emissions in the transportation sector.

Ms. Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global shared: “The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emission transportation future. We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties, but will also help accelerate the green energy transition in India and the region.”

Dr. TRB Rajaa, Minister of Industries of the Government of Tamil Nadu, said: “EV manufacturing companies are not only important economic drivers but also powerful accelerators to the State’s green vision. We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility. Possessing robust capabilities and unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development.”

The investment in Tamil Nadu represents VinFast’s third manufacturing project and the largest in the state’s history. The Government of Tamil Nadu pledges support by providing cleared land for manufacturing facilities, uninterrupted power supply, and other infrastructure support. The collaboration also includes discussions about opportunities for charging stations to promote clean mobility.

The decision to invest in Tamil Nadu is expected to foster mutual economic growth, strengthening the Comprehensive Strategic Partnership between Vietnam and India. Additionally, VinFast plans to establish a nationwide dealership network to build a strong brand presence and connect with customers across India, as claimed by the source.

Also read: VinFast introduces battery subscription program for US customers

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