VinFast Starts Building EV Manufacturing Plant In Tamil Nadu – CM Stalin Lays Foundation

Published: Monday, February 26, 2024, 10:35 [IST]

On February 25, 2024, Tamil Nadu marked a significant milestone in its industrial journey, hosting the foundation stone laying ceremony for the first VinFast electric car manufacturing unit in India.

The event, held in Thoothukudi, saw the participation of Tamil Nadu's Chief Minister M.K. Stalin along with top officials from VinFast, spotlighting the burgeoning electric vehicle (EV) industry in the region.

VinFast's Strategic Move into India

VinFast, a prominent electric car company originating from Vietnam, is making headlines by setting up its factory in Sillanatham, near Tuticorin, on a sprawling 408-acre site within the SIPCOT campus. This move pits VinFast against leading global players like Tesla, showcasing its ambition to carve a niche in the competitive EV market.

The company has earmarked a hefty investment of 16 thousand crore rupees, with an initial infusion of 4 thousand crores, aiming for a gradual total investment to support its ambitious plans.

Impact On Tamil Nadu's Auto Industry

The establishment of this factory not only signifies a substantial foreign investment in Tamil Nadu and positions Thoothukudi as the third auto hub in the state, following Chennai and Hosur. This development elevates Tamil Nadu as the only state in India hosting three major automobile manufacturing hubs.

The initial phase promises an annual production capacity of 1.50 lakh electric cars, offering employment to 3,500 individuals and, eventually, up to 10,000 people through direct and indirect jobs upon completion of the full investment.

Launching New Electric Cars

Construction activities have commenced, with expectations set for the first electric car to roll out by May 2025. VinFast plans to introduce the VF e-34 electric car as its first offering in India, followed by models VF6 and VF7.

The rapid progression from signing a Memorandum of Understanding (MoU) during the Tamil Nadu Global Investors Meet in Chennai to the foundation laying ceremony illustrates the Tamil Nadu government's commitment to fast-tracking significant industrial projects.

Thoughts About VinFast's Manufacturing Unit In Tamil Nadu

With VinFast's entry, Tamil Nadu is poised to enhance its stature on the global automotive stage, contributing significantly to the state's economic development and the wider adoption of electric vehicles in India.