Vietnamese electric vehicle maker VinFast has confirmed plans to enter India’s electric scooter and electric bus markets, expanding its local manufacturing footprint as the country becomes a core pillar of its global growth strategy.
The company signed a memorandum of understanding with the Government of Tamil Nadu to invest $500 million to expand its manufacturing complex in the southern port city of Thoothukudi. The investment marks the second phase of VinFast’s $2 billion commitment to the state, following an earlier $500 million allocation.
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As part of the expansion, VinFast will acquire about 500 acres of land next to its existing 400-acre site inside the SIPCOT Industrial Park. The additional space will house dedicated production lines and workshops for electric buses and electric scooters. The company has not yet disclosed production capacity targets for the new segments.
“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.”
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VinFast began local production in India in August 2025 and currently assembles the VF 6 and VF 7 electric SUVs from completely knocked-down kits at its Thoothukudi plant. The factory presently has an annual capacity of 50,000 units, which is being expanded to 150,000 units as the company prepares to introduce more models, including the Limo Green electric MPV in February 2026, followed later by the VF 3 and VF 5.
India’s electric two-wheeler segment remains the largest by volume, with 1.15 million units sold last year, accounting for nearly 59% of total EV sales. Electric buses, while smaller in unit numbers, remain strategically important due to high acquisition and operating value. The Indian government continues to push electrification of public transport through schemes such as FAME, FAME II and PM E-Drive, under which thousands of electric buses are being deployed nationwide.
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VinFast entered India formally in January 2025 with the debut of the VF 6 and VF 7 at the India Auto Show in New Delhi, placing it in direct competition with domestic automakers such as Mahindra & Mahindra and China’s BYD as it targets one of the world’s fastest-growing vehicle markets.