VinFast Commits $500 Mn to Expand Tamil Nadu Plant, Targets 150K Capacity for EVs & E-Scooters

Vietnamese electric-vehicle maker VinFast has signed a memorandum of understanding with the Tamil Nadu government to expand its manufacturing campus in Thoothukudi, Inc42 reported.

Under the deal, the state will allocate about 500 acres adjacent to VinFast’s existing site and provide support for permits and essential infrastructure, while VinFast will invest $500 million in a second phase of development.

The expansion will enlarge the Thoothukudi site to roughly 900 acres and add dedicated workshops and production lines for electric buses and electric two-wheelers, covering manufacturing, assembly, testing and related operations. VinFast said the investment is intended to scale annual production capacity from the plant’s current 50,000 units to 150,000 units.

EV Two-Wheelers Plan

VinFast plans to launch electric two-wheelers in India in 2026, initially rolling out two scooter variants after market studies and dealer onboarding.

The company said it aims to expand its dealer footprint to 35 outlets by year-end from 24 already operating in major cities, and is positioning the Thoothukudi facility as both a domestic manufacturing base and an export hub.

The automaker has committed to phased investments in India equivalent to roughly ₹16,000 crore, pursuing localisation over straight imports.

VinFast is also in talks with several state governments about supplying electric buses and is working with local partners on financing, after-sales and charging networks, naming alliances with providers such as RoadGrid and myTVS as part of its ecosystem strategy. The firm has also offered multi-year warranties and complimentary charging at its VGreens network to early buyers.

Vinfast Roadmap

Since entering the market, VinFast has introduced compact SUVs including the VF 6 and VF 7 and said it would add new models roughly every six months, including a seven-seater MPV slated for early next year.

Early retail figures have been modest, but the company reported that initial sales outperformed some competitors in recent months. VinFast said it will continue market testing before finalising the scooter line-up and dealer roll-out.