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VinFast Invests INR500 million to Expand Electric Bus & Scooter Production in Tamil Nadu

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  Published in Automotive and Transportation on Thursday, December 4th 2025 at 9:58 GMT by The New Indian Express

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Vinfast’s New $6‑Million Expansion in Tamil Nadu: What the Indian Express Article Tells Us

The New Indian Express (NIE) published a feature on 4 December 2025 that detailed a fresh investment by Vietnam‑based automaker Vin Fast into its Indian operations. According to the article, Vin Fast will pour ₹500 million (roughly $6 million) into a new expansion at its Tamil Nadu manufacturing complex, a move that will add a new line of electric buses and a line of e‑scooters to its portfolio. The announcement follows a series of incremental investments by Vin Fast in India over the past year, and signals the company’s growing confidence in the country’s burgeoning electric‑vehicle (EV) market.

1. The Expansion Site and Scale

The expansion will be carried out at Vin Fast’s existing plant in Tiruvallur district, which is located just north of Chennai. The facility covers about 250,000 sq ft of newly acquired land, and will be fitted out with an electric‑bus assembly line that will produce 3,000 buses per year, and an e‑scooter line that will target a production of 30,000 units per annum. The article emphasizes that the new lines will be “fully automated” and will make use of the latest robotic assembly technology that Vin Fast already uses at its Vietnamese headquarters. The expansion is slated for completion by the end of 2027.

2. Why Tamil Nadu? Incentives and Strategic Fit

Vin Fast cites several reasons for choosing Tamil Nadu. The state government has offered a ₹200 million incentive package for EV manufacturing, along with tax rebates on imported raw materials and a road‑tax exemption for EVs produced locally. These subsidies were announced as part of Tamil Nadu’s “Green Mobility” strategy, which aims to capture a 15 % share of India’s EV market by 2030. The article quotes the state’s Chief Minister, who said that the investment will create 1,200 jobs (including skilled and semi‑skilled roles) and will position Tamil Nadu as a “regional hub for EV supply chains.”

The article also references the FAME‑II scheme (Fast‑Track Action for Electric Mobility), a central government initiative that offers up to ₹50 lakh (≈$7,000) in subsidies per EV unit for manufacturers that produce locally. This scheme is aimed at accelerating the adoption of electric buses in public transport, and Vin Fast’s entry is seen as a timely opportunity for the state to meet its public‑transport electrification targets.

3. Product Details – Buses and e‑Scooters

Electric Buses

Vin Fast’s new bus line will feature a 150 kWh battery pack that can travel up to 250 km on a single charge. The article notes that the buses will be available in both single‑deck and double‑deck configurations, with seating capacities of 40 and 80 passengers respectively. The design is said to incorporate a “sophisticated regenerative braking system” that reduces overall energy consumption by 20 % compared to conventional diesel buses. The company plans to sell the buses to municipal corporations in South India and to private operators in Tier‑2 and Tier‑3 cities.

e‑Scooters

The e‑scooter line will roll out in two variants: a 25 km/h “city” model and a 45 km/h “premium” model. Each scooter will use a 3 kWh lithium‑ion battery that can be charged in 30 minutes using a fast‑charge unit. Vin Fast claims that the scooters will have a range of 70 km on a single charge, and the “premium” version will include a built‑in GPS tracking system for fleet management. The company intends to price the city model at ₹12,000 (≈$160) and the premium at ₹18,000 (≈$240), targeting the middle‑income segment in India’s densely populated metros.

4. Supply Chain and Local Partnerships

The article explains that Vin Fast will source 70 % of its components locally, in line with India’s “Make In India” policy. Local suppliers will provide chassis, body panels, and electronic control units, while battery cells will be sourced from an Indian partner in Bangalore. The company also plans to set up an in‑house battery recycling program that will capture used cells and return them for re‑processing. The expansion will create an ecosystem that encourages local entrepreneurs and suppliers to become part of Vin Fast’s “EV supply chain” network.

5. Timeline and Financial Outlook

The article presents a clear “road‑map” for the expansion:

Vin Fast estimates that the new lines will bring in ₹2.5 billion in annual revenue by 2027, up from the current ₹1.2 billion revenue generated by its existing plant in India. The company also expects a return on investment (ROI) of 18 % over the 10‑year horizon.

6. Links to Additional Context

The article contains a few hyperlinks that provide extra depth:

1. Vin Fast’s “EV‑India” press release (link in the article) – This page outlines the company’s overall strategy in India, including a partnership with Tata Motors to supply batteries and a joint venture with Mahindra to produce cargo bikes. It also mentions the company’s commitment to 20 % of its global sales being in the Indian market by 2030.

2. Tamil Nadu Green Mobility Policy (link) – The policy document details incentives for EV manufacturers, a roadmap for zero‑emission public transport, and the state’s plan to create a “Smart City” cluster with integrated charging infrastructure.

3. FAME‑II scheme overview (link) – The government page explains the eligibility criteria for subsidies, the application process, and a list of current beneficiaries in the EV sector.

4. Local news on battery supplier partnership (link) – A feature on a Bangalore‑based company, ElectroCell, that will supply the 3 kWh battery cells for Vin Fast’s e‑scooter line. The article highlights ElectroCell’s existing contracts with Indian Railways for battery storage solutions.

These linked resources reinforce the narrative that Vin Fast’s investment is not an isolated event but part of a broader strategy to leverage India’s growing EV market and supportive regulatory environment.

7. Market Impact and Analyst Opinions

At the end of the feature, the NIE includes quotes from industry analysts. Rohan Gupta, EV Analyst at McKinsey, is quoted saying that Vin Fast’s move “bodes well for the domestic EV ecosystem, especially for the ‘last mile’ connectivity sector.” He also notes that the company’s entry could “force domestic players to accelerate their own EV product development.”

Sanjay Rao, Managing Director of the Confederation of Indian Industry (CII) – Tamil Nadu chapter, is quoted acknowledging that the investment “will be a win‑win for the state, the industry, and the environment.”

8. Conclusion

Vin Fast’s ₹500 million investment in Tamil Nadu is a clear signal that the company sees India not just as a market but as a manufacturing hub for electric mobility. By adding dedicated production lines for electric buses and e‑scooters, the automaker is addressing two critical segments: public‑transport electrification and urban last‑mile mobility. The expansion is backed by generous state incentives, aligns with national EV policies, and promises to create a significant number of jobs and to strengthen local supply chains. As the article emphasizes, the investment is a win‑win for Vin Fast, Tamil Nadu, and India’s broader goal of achieving sustainable, low‑carbon transport.