VinFast, the electric vehicle manufacturer owned by Vingroup JSC, signed a memorandum of understanding (MoU) with the Government of Tamil Nadu on 4 December 2025 to expand its Thoothukudi manufacturing facility. The agreement allocates additional land for new production capacity and marks the second phase of the company’s previously announced USD 2 billion commitment in India.
The state government will allocate about 200 hectares of land in the SIPCOT Industrial Park in Thoothukudi, adjacent to the company’s current site. The land will support new production lines for electric buses, electric two-wheelers and related charging infrastructure. The Government of Tamil Nadu will also provide support in securing permits and establishing utility and road connectivity for the expansion.
VinFast will invest USD 500 million in developing dedicated workshops for manufacturing, assembly and testing operations. The company said the planned capacity additions will broaden its product portfolio in India beyond electric cars and are expected to increase localisation, create new employment opportunities and strengthen workforce skills in the region.
The existing Thoothukudi facility spans 160 hectares and has an annual production capacity of 50,000 electric vehicles. VinFast is expanding this to 150,000 units as part of its multi-phase investment plan.
“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,” said Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO. He said the initiative is expected to support localisation and job creation.
Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu, stated that the additional production lines for electric buses and e-scooters would add momentum to the state’s green transport plans. He said the government will work with VinFast to facilitate the project’s implementation.
VinFast has been expanding its electric vehicle ecosystem in India, including manufacturing, distribution, charging infrastructure, aftersales services and battery recycling. The company’s dealer network has grown to 24 outlets, with a target of reaching 35 by the end of 2025.
VinFast, listed on NASDAQ as VFS, manufactures electric sport utility vehicles, e-scooters and e-buses. The company is expanding its distribution network and production footprint across North America, Europe, the Middle East and Asia.
