The state government of Tamil Nadu and VinFast, the top producer of electric cars (EVs) in Vietnam, today agreed on a Memorandum of Understanding (MoU) to spend US$ 2 billion in the production and export of automobiles from India.
VinFast and the Tamil Nadu State Government plan to invest a maximum of US$ 2 billion, with a planned US$ 500 million commitment for the project’s first phase, which will run for five years from the date of start, according to a statement from VinFast.
This action represents a major milestone in VinFast’s worldwide expansion strategy as it gives the company access to the third-largest auto market in the world. The goal of the expansion into India is to take advantage of growth prospects in the most populous country in the world and the quickly growing EV market. The corporate statement went on to say, “This initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.”
It is anticipated that the construction of the company’s integrated electric car factory in Tamil Nadu will create between 3,000 and 3,500 new jobs in the region. The VinFast-Tamil Nadu project, which is located in Thoothukudi, intends to develop into an electric car production hub in the area with a 150,000-unit-per-year manufacturing capability.
It is anticipated that the plant’s construction will start in 2024. The business asserts that this project will provide a solid basis for economic growth in Tamil Nadu and throughout India. The company plans to establish a national dealership network in addition to constructing production facilities in Tamil Nadu. The goal is to quickly build a strong national brand presence and interact with customers.
In addition to its financial gains, the project will set the stage for the growth of environmentally friendly transportation, with a goal of having 30% of newly registered private vehicles be electric. This is in line with the state government’s efforts to reduce transportation-related carbon emissions.
What are VinFast officials saying regarding the MoU?
“The MoU demonstrates our strong commitment to the sustainable development and vision of a zero-emission transportation future,” stated Tran Mai Hoa, Deputy CEO of Sales and Marketing at VinFast Global. In addition to providing significant financial gains for those involved, we think investing in Tamil Nadu would hasten the region’s and India’s shift to green energy.
According to Dr. TRB Rajaa, the Tamil Nadu government’s minister of industries, investment, promotions, and commerce, “EV manufacturing companies are not only important economic drivers but also powerful accelerators to the state’s green vision.” We are happy that VinFast has decided to locate its integrated EV factory in Tamil Nadu. With strong capabilities and an unwavering dedication to a sustainable future, VinFast is poised to become a dependable economic partner and a significant contributor to the long-term development of Tamil Nadu.
According to the press release, VinFast’s green transport development project is the biggest investment in Tamil Nadu’s history and its third manufacturing project. In light of the project’s concrete economic and social benefits, the Tamil Nadu government has pledged to provide cleared land for the manufacturing facilities, continuous power supply, and other infrastructure support, based on a best-effort basis.
Both sides will also keep working together and talking about ways that charging stations might help move us closer to a future of clean transport. The state of Tamil Nadu and VinFast both benefit economically from this investment choice, which also strengthens the Comprehensive Strategic Partnership between Vietnam and India.
As a part of Vingroup, VinFast aims to propel the worldwide revolution in smart electric vehicles forward. Founded in 2017, VinFast is the owner of a cutting-edge, up to 90% automated automotive manufacturing facility in Hai Phong, Vietnam, with industry-leading scalability.
