According to the Deccan Herald of India (DH, part of the Deccan Herald, Prajavani, Sudha, and Mayura newspaper group with 10 million readers), VinFast, the large electric vehicle conglomerate of Vietnam, has been granted around 400 acres (1.6 million square meters, which is equivalent to approximately 220 football fields) at the industrial park owned by the Tamil Nadu State Industries Promotion Corporation (SIPCOT) in Thoothukudi for its first factory in India.
The source of the news mentioned that the groundbreaking ceremony for the VinFast India factory is expected to take place on February 25th. Tamil Nadu Chief Minister M K Stalin might attend the event.
The “in-principle” land allocation at SIPCOT in the port city, located 620 km from Chennai, took place just a month after VinFast and the Tamil Nadu government signed a Memorandum of Understanding (MoU) to build an electric vehicle and electric vehicle battery production facility.
The Deccan Herald also added that VinFast has committed to investing $500 million for the first phase of the project over a period of 5 years, with the total investment potentially reaching $2 billion.
The location of the industrial park where VinFast is setting up the factory in Tamil Nadu is considered convenient as it is near the Thoothukudi port. Illustrative photo.
The new factory will have an area of 380 acres (1.5 million square meters). “The state government has given in-principle approval for the land allocation. The company will initiate the process of applying for various approvals,” a close source told Deccan Herald.
The land plot for VinFast’s electric vehicle ecosystem will be located about 10 km away from the Thoothukudi port, making exports for the Vietnamese automaker, which is considered a competitor to Tesla in the US, more convenient.
VinFast India Plant to Produce 150,000 Cars per Year
The factory is expected to produce around 150,000 cars per year. With VinFast’s entry, Tamil Nadu state authorities said they plan to position the Thoothukudi-Tirunelveli region as the third automotive hub of the state, with companies such as Bosch and Yokohama Tires establishing manufacturing units in the area.
“VinFast also wants its suppliers to be near its factory. We will allocate land to them as and when they require it to ensure an ecosystem is created in the region,” the source added.
VinFast will be the first Original Equipment Manufacturer (OEM) in the automotive sector to enter Tamil Nadu in the last 15 years since Renault-Nissan in 2008.
VinFast’s investment is seen as a major boost for Tamil Nadu, which has emerged as India’s electric vehicle hub, attracting over 40% of the planned investment in the electric vehicle sector, including two-wheelers.
Previously, VinFast made its debut in the Indonesian market at the Indonesia International Auto Show 2024. This is the first time VinFast introduced its reverse-engineered models to the international market. This demonstrates VinFast’s strong commitment to making electric vehicles more accessible.
VinFast’s exhibition booth will be open to visitors from February 15th to 25th at the Jakarta International Expo Center, the capital of Indonesia.
VinFast has announced a long-term investment of around $1.2 billion in the Indonesian market. Within that, the company of billionaire Pham Nhat Vuong will invest $200 million to construct a production plant with an annual capacity of up to 50,000 electric vehicles in Indonesia.
