VinFast set to expand Tamil Nadu plant for EV buses and scooters: Details

Vietnamese EV maker VinFast has taken another step toward growing its presence in India by striking a Memorandum of Understanding with the Tamil Nadu government. As part of this arrangement, the company will gain access to 200 hectares in the SIPCOT Industrial Park near its current Thoothukudi base, clearing the way for a major expansion.

This move represents USD 500 million in fresh investment, forming the second stage of VinFast’s larger USD 2 billion plan for the region. The new phase will focus on building dedicated facilities for electric buses and electric two-wheelers, covering everything from manufacturing and assembly to testing. In return, the state has agreed to extend support through required approvals, essential infrastructure including power, water, roads, and waste systems-and various incentives.

VinFast’s existing operations span 160 hectares, where it already produces electric cars. The plant currently has a capacity of 50,000 vehicles annually, with an ongoing scale-up targeting 150,000 units a year. Once the new development is complete, the site will also house production lines for e-buses and e-scooters, significantly broadening its EV portfolio in India.


Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said:
“The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India from electric cars to electric buses and e-scooters allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localization, and strengthen the skills of the local workforce. VinFast believes Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”

T. R. B. Rajaa, Minister of Industries, Government of Tamil Nadu, said:
“We welcome VinFast’s next phase of planned development of electric cars in Tamil Nadu, and the introduction of electric bus and e-scooter production will add further momentum to the green transportation strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and ensuring favourable conditions throughout the implementation process, delivering lasting benefits for the community and the regional economy. We are dedicated to supporting Vingroup’s success in Tamil Nadu so their growing ecosystem can continue to create jobs for the people of the state.”

Vinfast currently sells two models in the Indian market - VF6 and VF7 electric SUVs priced from Rs 16.49 lakh and Rs 20.89 lakh, respectively (ex-showroom).

The VF6 is powered by a 59.6kWh battery paired with a front-mounted motor, producing 204hp and 310Nm. On the WLTP cycle, it offers a driving range of up to 480km and can accelerate from 0-100kph in 8.89 seconds, as per VinFast. Charging options include compatibility with 3.3kW and 7.2kW AC units, along with support for DC fast charging.

The VF7 gets both two-wheel-drive and all-wheel-drive versions, both variants powered by a 70.8kWh battery. The 2WD setup features a 204hp front-mounted motor, identical to the VF6, while the AWD variant adds a rear motor, delivering a combined 350hp and 500Nm. On the WLTP cycle, the VF7 is claimed to cover 450km in FWD guise and 431km with AWD.
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