According to India’s Deccan Herald newspaper, with a readership of 10 million (part of the Deccan Herald, Prajavani, Sudha, and Mayura group), VinFast, the leading electric vehicle manufacturer in Vietnam, has been allocated around 400 acres (1.6 million square meters, equivalent to approximately 220 football fields) of industrial land in Thoothukudi at the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) for its inaugural plant in India.
As per the report, the groundbreaking ceremony for VinFast’s Indian facility is set for February 25, and there is a possibility that the Chief Minister of Tamil Nadu, M K Stalin, may attend.
The land assignment, described as “in principle,” in the port city, located 620 km from Chennai, occurred just a month after VinFast and the Tamil Nadu government inked a Memorandum of Understanding (MoU) to establish a facility for electric vehicles and batteries.
The Deccan Herald additionally states that VinFast has pledged an investment of $500 million in the initial phase over a span of 5 years, with the potential total amount reaching $2 billion.
The forthcoming facility will span 380 acres (1.5 million square meters). “The state government has given initial consent for the land assignment. The company will commence the application procedure for various approvals,” disclosed a reliable source to Deccan Herald.
The location for VinFast’s electric vehicle ecosystem will emerge roughly 10 km from the Thoothukudi port, streamlining the export activities of the Vietnamese automaker, recognized as a formidable competitor to Tesla in the United States.
VinFast’s new facility in India aims to produce 150,000 cars per year
The introduction of VinFast has prompted officials to strategize the Thoothukudi-Tirunelveli region as Tamil Nadu’s third automotive hub, alongside companies like Bosch and Yokohama establishing production units in the vicinity.
In addition, VinFast desires proximity between its plant and suppliers. If suppliers express the need, the allocation of land will ensure the establishment of an ecosystem in the region, as per inside sources.
This move positions VinFast as the initial Original Equipment Manufacturer (OEM) in Tamil Nadu’s automotive sector in the last 15 years, succeeding Renault-Nissan in 2008.
VinFast’s investment is anticipated to significantly benefit Tamil Nadu, propelling it as India’s primary electric vehicle hub, constituting over 40% of the planned total investment in the electric vehicle sector, encompassing two-wheelers.
Previously, VinFast unveiled its models in Indonesia at the 2024 Indonesia International Auto Show, marking the global debut of VinFast’s cars capable of reverse driving. This underscores VinFast’s steadfast commitment to enhancing the accessibility of electric vehicles.
VinFast’s exhibition booth will be open to visitors from February 15-25 at the Jakarta International Expo Center in Indonesia’s capital.
VinFast has committed a long-term investment of around $1.2 billion in the Indonesian market. The company, led by billionaire Pham Nhat Vuong, will allocate $200 million for constructing a manufacturing plant with an annual capacity of up to 50,000 electric vehicles in Indonesia.
According to Reuters.
By. Pham Thanh Bien
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