VinFast splashes into Indian EV market with Rs.1,600 crore investment and 3,500 job creation
VinFast initiated the construction of its expansive 400-acre Electric Vehicle (EV) manufacturing facility in Tamil Nadu on February 25, making a significant stride into the Indian market.
Following the Memorandum of Understanding (MoU) signed with the government of Tamil Nadu on January 6, 2024, VinFast committed a noteworthy investment of $500 million for the first phase of the facility over the next five years.
Key highlights of VinFast’s entry into the Indian EV market:
1. Local job creation: The integrated EV manufacturing facility in Tamil Nadu is set to generate approximately 3,000 to 3,500 local job opportunities, establishing itself as a significant electric vehicle production hub in the region.
2. Annual capacity and export program: The facility is projected to have an annual capacity of up to 150,000 units, contributing not only to the Indian market but also supporting VinFast’s export program in South Asian, Middle Eastern, and African countries.
3. Green transportation agenda: VinFast’s entry aligns with India’s green transportation agenda, aiming to have 30% of newly registered private cars as electric vehicles. The company’s commitment to sustainability mirrors the broader objectives of the Indian government.
4. Sales targets and market expansion: In its fourth-quarter and full calendar-year 2023 results, VinFast revealed an ambitious sales target of 100,000 EVs in 2024. This includes its entry into the US market and strategic positioning in untapped, volume-driven markets like India and Indonesia.
VinFast’s significant investment and commitment to job creation reflect its intent to establish a strong presence in the Indian EV market and contribute to the country’s sustainable mobility goals.
