May 22, 2024
Investment

VinFast unveils $2 billion investment for integrated electric-vehicle manufacturing facility in Tamil Nadu


Vietnamese electric vehicle giant VinFast Auto Ltd Sunday unveiled plans to establish an integrated electric vehicle facility in Tamil Nadu. The automaker, eyeing to break into the world’s third-largest automobile market, confirmed its commitment to invest $2 billion in the state.

The company has earmarked an initial investment of $500 million, the EV giant said in a statement, for the first phase of the project, spanning five years from the commencement date.

Construction of the facility is targeted to start this year, VinFast Auto said. The project will have an annual capacity of as much as 150,000 units, the company added.

“VinFast would set up an EV car and battery manufacturing facility in Tuticorin at an investment of 16,000 crore. This is not just a mere investment. It is a giant leap for economic growth in South Tamil Nadu,” state Chief Minister MK Stalin wrote in a social media post.

The project is supposed to generate about 3,500 jobs in the region.

“The MoU demonstrates VinFasts’ strong commitment to the sustainable development and vision of a zero-emission transportation future,” PTI quoted VinFast Global Deputy CEO Sales and Marketing, Tran Mai Hoa as saying.

“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,” she added.

The state government is committed to providing cleared land for the manufacturing facilities, uninterrupted power supply and other infrastructure support, the statement said.

“Fantastic news for the South. Global EV giant VinFast has confirmed entry into India via TN. Beating expectations and speculations, VinFast will be setting up both its EV car and battery manufacturing plant in Tuticorin with an overall investment of USD 2 billion (over 16,000 crore),” Minister for Industries T R B Rajaa said.

“We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility. I thank the Chairman and the entire VinGroup family, for having trust in the infrastructure and talent pool of Tamil Nadu”, he added.

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