VinFast’s manufacturing facility in Hai Phong, Vietnam / Photo credit: VinFast
VinFast, the Vietnam-based electric vehicle manufacturer, has announced plans to break ground on its new India facility on February 25.
The company has committed to investing US$500 million for the first phase of the integrated EV factory, spanning five years from the kickoff. Last month, it signed a memorandum of understanding with the government of Tamil Nadu, the state where the facility is located.
VinFast plans the factory to become a “first-class” EV production hub with an annual capacity of up to 150,000 units. In addition to the Indian market, EVs produced in Tamil Nadu will also be exported to countries in South Asia, the Middle East, and Africa.
In a statement, VinFast said the new factory would create 3,000 to 3,500 job opportunities for local residents.
India’s EV market has grown rapidly in the last few years. According to a Bain and Company report, EVs may make up more than 40% of the country’s automotive market while generating over US$100 billion in revenue by 2030.
In addition to India, VinFast is accelerating its global expansion, having debuted its cars in Indonesia this month. The company has also met with Ferdinand Marcos Jr., the president of the Philippines, where VinFast will start operations this year.
The firm will release its earnings for the fourth quarter of 2023 later today.
See also: Vingroup founder’s EV play revs up Vietnam’s ride-hailing race
Editing by Putra Muskita and Dhania Putri Sarahtika
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