VinFast Gets Approval for Phase 2 Expansion of Thoothukudi EV Plant, Tamil Nadu
Vietnamese electric vehicle maker VinFast has received investment approval for Phase 2 of its manufacturing facility in Thoothukudi, Tamil Nadu, as it steps up its localisation strategy in India. The company has not disclosed the investment amount, additional production capacity, or timeline associated with the expansion.
Phase 2 forms part of VinFast's broader $500 million investment plan for the facility and is expected to include new production lines for electric buses and two-wheelers, in addition to its existing electric passenger vehicle assembly. The plant currently has an initial annual capacity of 50,000 electric vehicles, which is being scaled up to 150,000 units under the expansion.
The expansion follows an earlier memorandum of understanding under which the Tamil Nadu government agreed to allocate around 500 acres of land adjacent to VinFast's existing Thoothukudi facility within the SIPCOT Industrial Park, along with support for permits and infrastructure connections including electricity, water, road access, drainage and waste management.
Alongside the plant expansion, VinFast said it plans to design, develop and manufacture electric vehicles specifically for the Indian market with higher levels of localisation, rather than adapting existing global models. The company is engaging with more than 300 Indian suppliers through supplier events in India and Vietnam to build a domestic component sourcing base to support the expanded operations.
VinFast said it continues to work with government agencies on policy frameworks to support further production and investment by global EV manufacturers in India, with Tamil Nadu positioned as a strategic hub in the company's global manufacturing network.