Vietnamese EV manufacturer VinFast has announced a major expansion of its Thoothukudi facility in Tamil Nadu, with a planned investment of approximately ₹4,000 crore (USD 500 million) under a new MoU with the Tamil Nadu government. The expansion allocates around 200 hectares of additional land adjacent to its existing factory inside SIPCOT Industrial Park.
New Production Lines for Multiple EV Segments
The expanded facility will house dedicated production and assembly lines for electric buses and e-scooters (two-wheelers), diversifying VinFast’s portfolio beyond cars. The plan aims to cover manufacturing, assembly, testing and associated infrastructure for these additional vehicle categories. This positions the company to address demand across public transport, shared mobility, and urban two-wheeler segments.
Scaling Capacity, Localization and Employment Gains
VinFast’s existing plant spans 400 acres and had initial capacity for 50,000 EVs per year; the expansion is expected to raise this to roughly 150,000 units annually by integrating the new production lines. The move is expected to generate substantial local employment, boost supply-chain localisation, and support the state’s EV and green mobility ambitions.
Implications for India’s EV Ecosystem and Public Mobility
By adding e-bus and e-scooter production to its Indian operations, VinFast is aligning with national efforts to electrify public and last-mile transport. The expanded facility could supply state transport fleets with electric buses and address growing demand for affordable, electric two-wheelers helping drive down emissions and support clean-mobility policies.
The integrated approach spanning cars, buses, scooters, and a broad manufacturing base strengthens VinFast’s role as a full-spectrum EV player in India. As production ramps up, the expansion could catalyse growth in supporting ecosystem segments like battery manufacturing, charging infrastructure, and EV after-sales services.
