As EVs see more penetration and adoption among the Indian masses, global players want to have the first mover advantage in a huge market such as India.
Vietnamese electric vehicle (EV) maker VinFast signed an agreement on Saturday to set up its first manufacturing facilities in India, as the ambitious company seeks to penetrate the world’s third-largest vehicle market. To subscribe please click tau.id/2iy6f and access our live channel.
VinFast and the southern state of Tamil Nadu agreed to work toward an investment of up to $2 billion, with an intended commitment of $500 million for the first five years of the project, according to a joint statement.
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According to the official statement, “VinFast and the state government will work toward a total investment of up to $2 Bn, with an intended commitment of $500 Mn for the first phase of the project, spanning five years from the commencement date. This move indicates a significant step in VinFast’s expansion into the world’s third-largest vehicle market.”
The construction of the project will likely commence in 2024. The announcement comes just days after reports surfaced that VinFast was looking to establish its first Indian manufacturing facility in Tamil Nadu for the production of EV batteries.
The unit will be set up in Thoothukudi and, as per the company, will create nearly 3,000 to 3,500 jobs locally. The facility has been envisaged with an annual capacity of up to 1.5 Lakh units and is part of VinFast’s strategy to strengthen its supply chain capabilities.
As part of the MoU, Tamil Nadu government will offer land clearances, uninterrupted power supply, and other infrastructure support for establishing the upcoming plant. The EV maker also added that the two parties will also collaborate on ‘opportunities for charging stations and other allied infrastructure.
