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Vinfast Expands Tamil Nadu Plant to Produce E-Buses and E-Scooters

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  //automotive-transportation.news-articles.net/co .. adu-plant-to-produce-e-buses-and-e-scooters.html
  Published in Automotive and Transportation on Thursday, December 4th 2025 at 22:53 GMT by The New Indian Express

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Vinfast Expands Tamil Nadu Plant to Produce E‑Buses and E‑Scooters

The New Indian Express reported on 5 December 2025 that Vietnam‑based automotive and e‑mobility manufacturer Vinfast will enlarge its existing plant in Tamil Nadu to accommodate new production lines for electric buses and electric scooters. The move is part of Vinfast’s broader strategy to tap India’s rapidly growing electric‑vehicle (EV) market, while also creating jobs and strengthening its supply‑chain footprint in the world’s second‑largest automobile market.

1. Why Tamil Nadu?

Vinfast’s current Tamil Nadu facility, located in the Tiruvallur district close to Chennai, already produces a range of electric scooters under its “VinFast Scooter” brand. The company has said that the location offers a strategic mix of industrial infrastructure, access to skilled labour, and proximity to major ports – all of which are essential for scaling up output. The state government has also extended incentives such as tax breaks and a “Manufacturing Development Scheme” that will aid the plant’s expansion.

The new capacity will see the plant produce up to 20,000 e‑buses and 200,000 e‑scooters per annum – a significant jump from its current output of 10,000 scooters and 500 buses. By doing so, Vinfast aims to be the first global player to mass‑produce a fully integrated electric‑bus line in India, including chassis, battery packs, and power electronics sourced from local suppliers where possible.

2. The Expansion Blueprint

The expansion will involve:

Vinfast will also install a dedicated battery‑pack assembly area that will use modules from its partner, LG Chem India, thereby boosting local content. The company intends to bring its “Vinfast Power” energy‑storage platform in-house, with the goal of achieving a 30 % local component utilisation across its product lines by 2027.

3. Market Context

India’s EV landscape has been evolving rapidly, thanks in part to the government’s FAME‑II (Faster Adoption of Mobility and Infrastructure‑Electric) scheme, which offers subsidies for EV purchase and infrastructure development. In 2024, India logged over 400,000 EVs sold, and projections suggest that the sector could hit 1 million units per year by 2027. E‑scooters and e‑buses are the two fastest‑growing segments, with the latter receiving attention from cities looking to replace diesel buses with zero‑emission fleets.

Vinfast’s expansion aligns with these trends. The company’s earlier launch of the “VinFast Scooter” – which was lauded for its 0‑80 km/h acceleration in 8 seconds and a range of 140 km – captured early adopters in tier‑2 and tier‑3 cities. According to the article, sales of the scooter in Tamil Nadu alone surpassed 5,000 units in the first six months of 2025, indicating strong regional demand.

4. Government Support & Strategic Partnerships

The Tamil Nadu state government has expressed strong support for Vinfast’s expansion, citing the project’s potential to create thousands of jobs and promote local entrepreneurship. Chief Minister M. K. Stalin is quoted in the article as saying, “Vinfast’s growth here will help Tamil Nadu become a hub for green mobility.”

Vinfast’s partnership with LG Chem India is also a key driver of the expansion. The battery‑pack facility will be set up under a joint‑venture model, with LG Chem providing high‑energy‑density cells and Vinfast managing the final assembly. This collaboration will help the company sidestep the current supply‑chain bottlenecks that many global EV players face.

In addition, the company is working with India’s Ministry of Heavy Industries to secure a “Production-Linked Incentive” (PLI) for its electric‑bus production line, which would reduce the tax burden on the finished product by up to 10 %. The article notes that Vinfast is also in talks with the Tamil Nadu Smart Mobility Council to support the deployment of a city‑wide e‑bus network in Chennai, a project slated for 2028.

5. Sustainability & Innovation

Vinfast’s expansion underscores its commitment to sustainability. The new plant will be powered by solar panels and will feature a closed‑loop recycling system for battery packs. The company says it will achieve zero‑waste certification by 2026. In terms of innovation, Vinfast plans to integrate its latest “VinFast Vision” AI‑based driving‑assist system into the e‑buses, allowing for semi‑autonomous navigation and route‑optimization – a first in India’s commercial bus sector.

6. Looking Ahead

The article concludes with optimism about Vinfast’s future in India. With the expansion in Tamil Nadu, the company aims to:

1. Double its scooter sales by 2026, capturing an estimated 10 % market share in the country’s e‑scooter segment.
2. Capture a foothold in the city‑bus market, potentially supplying 10 % of Chennai’s new electric‑bus fleet by 2029.
3. Boost local employment by creating more than 800 direct jobs and an additional 1,200 indirect roles in ancillary industries.

Vinfast’s ambition to become a key player in India’s EV ecosystem reflects a broader global shift toward electric mobility and a growing recognition that local production will be essential to meet demand while keeping costs down. The company’s partnership with local suppliers and the Tamil Nadu government’s supportive policies signal a strong foundation for this next phase of growth.