VinFast, the prominent Vietnamese automotive company, marked its entry into the Indian Electric Vehicle (EV) market with the commencement of construction at its sprawling 400-acre EV manufacturing facility in Tamil Nadu on February 25. This significant move follows the Memorandum of Understanding (MoU) signed with the Tamil Nadu government on January 6, 2024, wherein VinFast committed an impressive investment of Rs.1,600 crore for the initial phase over the next five years.
Key Highlights:
- Local Job Creation: VinFast’s integrated EV manufacturing facility is poised to create around 3,000 to 3,500 local job opportunities, establishing itself as a key electric vehicle production hub in Tamil Nadu.
- Annual Capacity and Export Program: The facility is projected to have an annual capacity of up to 150,000 units, not only catering to the Indian market but also supporting VinFast’s export program in South Asian, Middle Eastern, and African countries.
- Green Transportation Agenda: VinFast’s entry aligns seamlessly with India’s green transportation agenda, which aims 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.
- Sales Targets and Market Expansion: VinFast, in its fourth-quarter and full calendar-year 2023 results, unveiled an ambitious sales target of 100,000 EVs in 2024. This includes its strategic entry into the US market and positioning in untapped, volume-driven markets like India and Indonesia.
VinFast’s substantial investment and dedication to job creation reflect its determination to establish a robust presence in the Indian EV market, contributing significantly to the country’s sustainable mobility goals.
