Updated January 6th, 2024 at 21:20 IST
VinFast and Tamil Nadu collaborate on $2 billion investment for Indian expansion
VinFast and Tamil Nadu commit up to $2 billion, with an initial $500 million over five years, in a joint statement.
Vietnam's VinFast has inked a deal to establish its initial production facilities in India, aiming to tap into the world's third-largest automotive market. VinFast and Tamil Nadu have collaboratively committed to a potential investment of up to $2 billion, with an initial infusion of $500 million over the project's first five years, according to a joint statement.
The agreement outlines the commencement of construction of the electric vehicle (EV) and battery manufacturing plants later this year, with expectations to create 3,000 to 3,500 jobs within the local community. Earlier reports had indicated that VinFast would choose Thoothukudi in Tamil Nadu as the location for its inaugural Indian manufacturing facility, focusing on EV batteries.
Established in 2017 and venturing into EV production in 2021, VinFast has been proactive in outlining its international expansion strategies. After debuting on Nasdaq in August, the company initially disclosed its plans to expand operations into India a month later.
(With Reuters Inputs)
Published January 6th, 2024 at 21:20 IST