Various incentives provided by the Indian government are attracting different automotive companies, both domestic and international, to invest in car production in India. Among them, VinFast, an electric vehicle (EV) manufacturer from Vietnam, has set up a manufacturing facility in Tamil Nadu to produce electric cars amidst Tesla’s entry into the Indian market.
VinFast is establishing a factory in India
VinFast has signed a memorandum of understanding(MOU) with the Tamil Nadu government. The annual production capacity of the factory will be 150,000 cars. It is estimated that when will be fully operational, the factory will create jobs for 3,000 to 3,500 nos of people. The cars will not only be sold in India but will also be exported to the international market. The inauguration event was attended by the Chief Minister of the state, M K Stalin, Minister for Industries T R B Rajaa, and Industries Secretary V Arun Roy.
After collaborating with the Tamil Nadu government, VinFast announced that they would invest $200 million, approximately ₹1,638 crore. However, the company revealed that they would invest $50 million, around ₹416 crore, in the first five years. In this context, VinFast India CEO Pham Chanh Du said, ‘The establishment of the VinFast base in Tamil Nadu is a significant step towards long-term and sustainable transportation infrastructure development in India. It will create extensive employment opportunities and strengthen the local economy.’ VinFast has also stabilized its dealer partnership network in the country. However, there is no information yet on which EV model they will sell in India.
