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Vietnamese EV giant VinFast breaks ground on a $2 billion factory in India, creating jobs, boosting green mobility, and targeting exports

In a move poised to reshape India’s electric vehicle (EV) landscape, Vietnamese automaker VinFast is set to break ground on a $2 billion integrated EV manufacturing facility in Thoothukudi, Tamil Nadu, on February 25th, 2024. This groundbreaking (pun intended) ceremony marks a significant milestone in the strategic partnership between VinFast and the Tamil Nadu government, aiming to propel green transportation in India and the region.

This collaboration, initiated with a Memorandum of Understanding (MoU) signed in January, entails an initial investment of $500 million for the first phase of the facility. The project is expected to generate 3,000 to 3,500 local jobs, fostering economic growth and skill development in the region. VinFast’s Tamil Nadu project envisions a first-class EV production hub with an annual capacity of 1.5 lakh units.

Not only will it cater to the rapidly growing Indian EV market, but it will also serve as an export hub for South Asian, Middle Eastern, and African countries. This aligns perfectly with India’s plan of becoming a manufacturing powerhouse on a global scale. This ambitious project could also help the government achieve 30% electric vehicle penetration in the private car segment domestically by 2030.

Beyond its economic impact, the project holds immense significance for green mobility in the region. VinFast’s commitment to innovation and sustainability resonates with India’s national goals of reducing carbon emissions in the transport sector. The collaboration extends to exploring opportunities for setting up charging stations, paving the way for a clean mobility future.

While there are no concrete details on what VinFast plans to sell in India, previous reports have suggested that the brand plans to kickstart its operations here with two-wheelers and four-wheelers. Among the latter, we expect VF e34 and VF7 electric SUVs to hit the market first, followed by VF6 and VF8 in the later years. Among two-wheelers, we expect to see the Evo200 or Klara S on sale.

This groundbreaking ceremony marks a new chapter in VinFast’s global expansion strategy. Having recently debuted in Indonesia and set its sights on the Philippines, the company is now firmly establishing its presence in one of the world’s fastest-growing economies.

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