Vietnam's VinFast plans Rs 7,000 crore investment to manufacture electric scooters and buses in Tuticorin, Tamil Nadu
Vietnamese electric vehicle (EV) manufacturer VinFast is set to strengthen its presence in India with a proposed ₹7,000 crore investment to expand its manufacturing facility in Tuticorin (Thoothukudi), Tamil Nadu. The second phase of the project aims to diversify the company's Indian operations beyond electric passenger vehicles by introducing production lines for electric scooters and electric buses, reinforcing Tamil Nadu's status as a leading EV manufacturing destination.
According to the company's expansion proposal submitted for environmental clearance, the upgraded facility will significantly enhance production capacity. Once completed, the plant is expected to manufacture up to 2 lakh electric cars, 10 lakh electric scooters, and 2,000 electric buses annually. The expansion will include dedicated manufacturing workshops, testing facilities, component production units, and supporting infrastructure, creating one of India's most comprehensive electric mobility manufacturing hubs.
The investment builds upon VinFast's existing manufacturing operations in Thoothukudi, where the company established its first production facility outside Vietnam. The expansion aligns with India's rapidly growing electric mobility market, particularly in the electric two-wheeler segment and public transport electrification initiatives. By manufacturing multiple EV categories locally, VinFast aims to improve localization, reduce production costs, and strengthen its competitiveness in the Indian market.
The project is also expected to generate substantial employment opportunities while supporting the development of a local supplier ecosystem across Tamil Nadu. Industry experts believe the expansion will attract ancillary industries, battery manufacturers, and component suppliers, further enhancing the state's automotive value chain. The investment complements both the Tamil Nadu government's vision of becoming a global EV manufacturing hub and the Centre's initiatives to accelerate clean mobility adoption across the country.
With this ₹7,000 crore expansion, VinFast is positioning India as a strategic manufacturing and export base for its future electric mobility portfolio. The proposed facility is expected to serve not only domestic demand but also international markets, strengthening India's role in the global EV supply chain while contributing to sustainable transportation, industrial growth, and long-term economic development.