VinFast formalizes 500-acre expansion to produce electric buses and e-scooters in Tamil Nadu, India

VinFast will establish dedicated electric bus manufacturing capacity in Tamil Nadu, India, through a new land-allocation agreement that expands its Thoothukudi site by roughly 500 hectares.

VinFast’s India expansion also dovetails with its planned European market entry for buses. The company debuted in October at Busworld Europe 2025. The company is prioritizing early footholds in the Netherlands, Belgium and Germany—supported by a growing local organization and a dedicated parts hub—to secure initial references before expanding south and east across the continent.

Bus-focused expansion in India

The state will allocate approximately 500 acres adjacent to VinFast’s existing 160-hectare facility, enabling construction of new workshops and production lines dedicated to electric buses and e-scooters. The USD 500 million investment forms the second phase of VinFast’s USD 2 billion commitment in India. Tamil Nadu will provide supporting infrastructure—power supply, water, internal roads and waste systems—designed to speed project execution, VinFast states in a press note.

The existing Thoothukudi plant, originally configured for electric passenger vehicles with a 50,000-unit annual capacity, is already being scaled to 150,000 units. The adjacent land allows VinFast to segregate its commercial-vehicle operations and design layouts specifically around bus manufacturing, testing and final inspection.

Mr. Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, stated: “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. 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.”

Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu said: “We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and ensuring favorable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing ecosystem provides jobs for Tamil Nadu”.