HomeEnvironmentVietnam To Set Up $2 Bln EV Facility In India

Vietnam To Set Up $2 Bln EV Facility In India

Vietnam To Set Up $2 Bln EV Facility In India

Vietnam To Set Up $2 Bln EV Facility In India

NEW DELHI (IANS) – With an eye on climate change, Vietnam’s leading electric vehicle (EV) manufacturer VinFast and the Tamil Nadu state government on January 8 announced a partnership to build a $2 billion EV facility in the country, with an intended commitment of $500 million for the first phase of the project, spanning five years from the commencement date.

The establishment of VinFast’s integrated EV facility in Tamil Nadu is anticipated to generate approximately 3,000-3,500 employment opportunities locally.

This move indicates a significant step in VinFast’s expansion into the world’s third-largest vehicle market, which is also waiting for Elon Musk-run Tesla to enter the country.

Situated in Thoothukudi, the VinFast Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units.

Construction of the plant is anticipated to begin in 2024. The project will also pave the way for green transportation development, targeting 30 percent of newly registered private cars to be electric.

In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network.

Established in 2017, VinFast owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90 percent automation in Hai Phong, Vietnam.

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  • This is indeed an important development! The following additional information can be gleaned from a January 8, 2024 article, “VinFast to build a $2 billion EV plant in India as part of its global expansion” from detroitnews.com, as follows.

    * This will be VinFast’s first foray into India and is part of a global expansion that has included exports of EVs to the United States. It is building a $4 billion EV factory in North Carolina, where production is slated to begin this year.

    * The company aims to be selling in 50 markets worldwide by the end of this year. In October, it said it plans to build a $400 million electric vehicle factory in Indonesia. It has started shipping EVs made in Vietnam to neighboring Laos to serve as a fleet for Green SM, an EV taxi operator that is mostly owned by VinFast’s founder.

    * While it has struggled to sell its EVs in the U.S. and its early cars have received bad reviews, the company maintains that if it can succeed in the crowded and competitive American market, it can succeed anywhere.

    * India is one of the fastest-growing electric vehicle markets in the world. But more than 90% of its 2.3 million electric vehicles are cheaper and more popular motorbikes, scooters and rickshaws. The government has launched a $1.3 billion federal plan to encourage EV manufacturing and provide discounts for customers.

    * The plan is a key part of an effort by Indian Prime Minister Narendra Modi, who is seeking to win a third term in an election this year, to create manufacturing jobs in India.

    January 10, 2024

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