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Popular EV giant Vinfast to set up EV manufacturing facility in Tamil Nadu, India
On February 25th, 2024, VinFast Auto, the Vietnamese electric vehicle manufacturer will officially break ground on its highly anticipated integrated EV manufacturing site in Thoothukudi, Tamil Nadu. This marks a significant milestone in the company’s ambitious global expansion strategy. The will signify its commitment to capturing a slice of the rapidly growing EV market in India.
This groundbreaking ceremony arrives just over a month after VinFast signed a Memorandum of Understanding (MoU) with the Tamil Nadu government, pledging an initial investment of approximately Rs 425 crore. This swift execution underscores VinFast’s determination to establish itself in India. It is among the world’s fastest-growing major economies with a burgeoning EV sector.
Job Creation and Export Potential:
The VinFast Tamil Nadu facility is projected to be a game-changer. It will create 3,000 to 3,500 local jobs and aiming to become a top-notch electric vehicle production hub in the region. With an annual production capacity of up to 150,000 units at full capacity. The plant will not only cater to the Indian market but also serve VinFast’s export ambitions for South Asia, the Middle East, and Africa.
VinFast’s entry into India aligns perfectly with the country’s ambitious green transportation goals with the growing EV market. The Indian government aims to have 30% of newly registered private cars be electric by a certain target date, and VinFast’s project will undoubtedly contribute to achieving this target by catalyzing green transportation development.
Global Expansion and Untapped Potential:
This Indian venture comes on the heels of VinFast’s successful foray into the US market. Having set a sales target of 100,000 EVs in 2024, the company is looking to expand its reach and build scale, particularly in untapped, volume-driven markets like India and Indonesia.
Conclusion:
VinFast’s groundbreaking ceremony in Tamil Nadu marks a significant step towards establishing its presence in the Indian EV market. The company’s commitment to job creation, export potential, and alignment with India’s green agenda demonstrates its long-term vision. With its ambitious targets and strategic expansion plans, VinFast is poised to be a major player in India’s rapidly evolving automotive landscape. This development promises exciting times for the Indian electric vehicle sector, offering consumers more choices and contributing to a more sustainable future.
Also read: 2024 VinFast VF6 Price, Range, Top-Speed, 0-60 MPH & Features