VinFast to manufacture e-scooters and e-buses in India
The company has signed an MoU with the Government of Tamil Nadu to invest $500 million (approximately 429 million euros) to expand its manufacturing facility in Thoothukudi, a port city in the southern part of the state. The move marks the start of the second phase of its two-billion-dollar investment commitment to the state, following an allocation of $500 million in the first phase.
VinFast will procure approximately 500 acres of land adjacent to its existing 400-acre site in the SIPCOT Industrial Park. The company will utilise the additional real estate to set up dedicated workshops and production lines for electric buses and electric scooters. It has yet to reveal the planned production volumes for these segments.
The Vietnamese automaker started production in India in August 2025and plans to expand its presence rapidly by next year. Recently, local reports cited Vingroup Asia CEO and VinFast Asia CEO Pham Sanh Chau as saying the company plans to launch electric buses by August 2026 and electric two-wheelers in the same year.
Two-wheelers are the largest EV segment in India, and last year they accounted for 1.15 million units, or roughly 59 per cent, of the 1.95 million EVs sold. Buses, with 3,822 units, remain a small segment by volume, but they still hold significance due to their high unit value. The Indian government is strongly promoting the adoption of electric buses for public transport, making them a lucrative segment for manufacturers. It has deployed 400 electric buses under the FAME scheme and committed to a further 6,862 and 13,800 units under the FAME II and PM E-Drive schemes, respectively.
“The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs,” said Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO. “We also expect this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce. VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”
Currently, VinFast sells two SUVs in India – the VF 6 and VF 7 – which it assembles from CKD kits at its factory in Thoothukudi. The plant has an annual production capacity of 50,000 units, and the company is expanding it to 150,000 units to accommodate new models. In a recent interview with CNBC-TV18, Chau revealed plans to launch the Limo Green MPV in February 2026 and add the VF 3 and VF 5 SUVs to the local line-up later.
0 Comments