VinFast Plans ₹7,000 Crore Phase II Brownfield Expansion at Thoothukudi Plant for E-Scooter and Electric Bus Manufacturing
VinFast is planning a ₹7,000 crore second-phase expansion of its existing electric vehicle plant at Thoothukudi (Tuticorin), Tamil Nadu. The expansion will add production lines for electric scooters and electric buses to the existing facility, which currently manufactures electric passenger cars.
The Government of Tamil Nadu has signed an MOU with VinFast to allocate approximately 500 acres (around 200 hectares) of land in the SIPCOT Industrial Park in Thoothukudi, adjacent to the company's existing 408-acre facility. The state government has also committed to supporting permit clearances and provision of essential infrastructure including electricity, water, internal road access, drainage, and waste management connections.
The Phase II investment of approximately USD 500 million (₹7,000 crore) forms the second tranche of VinFast's overall USD 2 billion commitment to its Indian manufacturing operations. The expanded campus is expected to house dedicated workshops for electric bus and e-scooter manufacturing, assembly, testing, and related operations, with the facility's car production capacity also being scaled from 50,000 to 1,50,000 units per annum.
Upon completion of Phase II, the integrated Thoothukudi complex is targeted to achieve an annual production capability of up to 2 lakh electric cars, 10 lakh electric scooters, and 2,000 electric buses. VinFast's first phase investment at the site stands at approximately ₹1,200 crore. Electric bus production is targeted to commence by August 2026, with e-scooter manufacturing also planned within the same year.