VinFast to Invest $500 Million as Electric Bus and Scooter Manufacturing Expands in Tamil Nadu, India

11-Dec-2025

VinFast India Update Electric Bus & Scooter Manufacturing

Key Takeaways:

VinFast has signed a MoU with the Tamil Nadu government to expand its production facility in Thoothukudi.
The expansion involves a $500 million investment in electric buses and electric scooters manufacturing.
This is part of VinFast's broader $2 billion investment plan for India.
The move strengthens VinFast's presence in India’s growing electric mobility market, supporting the country’s green transport goals.

VinFast’s Bold Expansion in India’s Electric Mobility Market:

In a strategic move aimed at strengthening its footprint in India, VinFast, the Vietnamese electric vehicle manufacturer, announced a key expansion at its Thoothukudi plant in Tamil Nadu. This expansion will see electric buses and scooters rolling out for the first time from the facility, marking an exciting new phase in the company's development in India. This expansion is backed by an investment of $500 million, following the first phase of a larger $2 billion commitment to the region.

Strategic Location and Infrastructure Support:

VinFast has come up with 500 acres of land next to the existing 400-acre facility within SIPCOT Industrial Park. This additional space will be utilized for setting up specialized manufacturing lines for electric buses and two-wheelers, along with workshops for assembly, testing, and other operations. The Tamil Nadu government is extending full support for this expansion, including approvals, infrastructure development, and a framework of incentives to make certain the timely completion of the project.

Strengthening Localization and Employment Opportunities:

This expansion is in line with its larger goal of increasing localization, not only in the production but also in terms of employee development. The new production lines will allow the company to cater more effectively to the Indian market, the pace of which is accelerating rapidly toward electric mobility. By localizing the production process, VinFast is able to offer competitively priced electric buses and scooters, responding to growing demand for sustainable transport solutions.

Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, underlined that the expansion would not only provide diversity to VinFast's product portfolio but also bring considerable employment opportunities in the region. He further said that Tamil Nadu was fast emerging as a key nodal point of VinFast's international expansion plans, adding that the support of the state government played a vital role in fulfilling the green mobility aspirations of India.

Future Plans and Expansion Timeline:

VinFast’s entry into the electric bus and scooter markets is poised to meet the growing demand for electric public transport and two-wheelers in India. With plans to roll out electric buses by August 2026 and electric scooters within the same year, the company is accelerating its manufacturing capabilities to meet future market needs. VinFast’s current production in India includes the VF6 and VF7 electric SUVs, with the Thoothukudi plant having a current annual capacity of 50,000 units. The expansion will increase this to 150,000 units per year.

As part of its aggressive growth plan, VinFast will also be launching new electric vehicle models, including the Limo Green multipurpose vehicle in early 2026, alongside other models such as the VF 3 and VF 5 later in the year.

About Author:

Soham Bhattacharya, Automotive Sector Analyst

Soham Bhattacharya is an automotive industry analyst with 5 years of experience, focusing on market conditions, technological trends, and supply chain dynamics in automotive manufacturing. He specializes in electric vehicles, autonomous driving technologies, and the latest investment strategies shaping global automotive production. His work supports businesses in making data-driven decisions regarding manufacturing plant investments.

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