Source: AFP
Vietnamese automaker VinFast said it will build its first electric vehicle plant in India as part of a planned $2 billion investment as it looks to expand in the fast-growing market.
The facility will be located in the southern state of Tamil Nadu, according to a VinFast statement released on Saturday, which said there was an initial projected commitment of $500 million over the first five years of the project.
The communist state’s first domestic automaker is hoping to compete with EV giants like Tesla and is trying to crack international markets.
But VinFast’s overseas expansion faced a rocky start.
Of the 11,300 vehicles it sold in the first half of last year, 7,100 were bought by a company owned by the same parent company as VinFast.
The company listed on the Nasdaq in August, hitting headlines around the world as its valuation soared and then crashed.
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In the statement, the company said that “the VinFast Tamil Nadu project aims to develop into a premier EV manufacturing hub in the region, with an annual capacity of up to 150,000 units.”
Construction on the plant is expected to begin this year and create up to 3,500 local jobs.
“This initiative is a critical part of VinFast’s strategy to build a strong presence in key markets and strengthen its supply chain for global expansion,” the statement added.
Tamil Nadu Chief Minister M.K. Stalin welcomed the deal, calling it a “big leap in industrial development” for the state, in a social media post.
The announcement comes as VinFast named Pham Nhat Vuong, chairman of parent company Vingroup, as its new CEO on Saturday.
Vuong will “directly oversee VinFast’s operations, including global production, sales and marketing,” the statement said.
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Vuong, Vietnam’s richest man, replaces Le Thi Thu Thuy, who has held the position since 2021 and now becomes chairman of the board.
His net worth is about $4.6 billion, according to Forbes, and in April of last year, he gave VinFast a $1 billion grant.
Source: AFP