VinFast to set up EV plant in Tamil Nadu

Vietnam-based electric vehicle maker VinFast Auto Ltd commenced construction work for establishing a new integrated EV manufacturing unit at Thoothukudi in southern Tamil Nadu where the company has planned to invest ₹4000 crore, spread over 5 years.

Ground Breaking Event

The company broke ground as the State Chief Minister M K Stalin kicked off the construction work in the presence of State Ministers, government officials and top management of VinFast.

Investment in Tamil Nadu

Last month, the Vietnamese company, which manufactures and sells electric cars, electric scooters and electric buses, signed an agreement with the Tamil Nadu government to invest ₹16,000 crore over some time.

As per the CEO of VinFast India, the company chose Tamil Nadu to set up its EV factory due to skilled workforce, progressive policies of the State government for the EV sector and the presence of the EV manufacturing ecosystem,”,

Employment opportunities

The new factory will come up on a 400-acre site located at the industrial park of Tamil Nadu Industrial Promotion Corporation (SIPCOT) in Thoothukudi and it is expected to generate jobs for 3,000 to 3,500 people.

The upcoming EV unit is expected to have an annual capacity of up to 1,50,000 units. As per media reports, the new factory is expected to produce electric cars and electric two-wheelers.

VinFast also plans to establish a nationwide dealer network to build the brand. The EV factory will not only cater to the Indian market but will also serve countries in South Asia, the Middle East and Africa.

Request for Cut in Import duties

VinFast has requested the Central government for a cut in import duties on its EVs for a couple of years till it establishes its brand and gets its factory commissioned. Top global EV maker, Tesla, has also been seeking a 100 per cent cut on import duty to bring its fully-built EVs into India. However, the Union government has yet to announce its decision.

Category: Economy & Banking Current Affairs - 2024