VinFast Plans Rs 7000 Crore Tuticorin Expansion for Electric Scooters and Buses
Vietnamese electric vehicle manufacturer VinFast has proposed a Rs 7,000-crore Phase II expansion at its manufacturing complex in Tuticorin, Tamil Nadu. The project aims to widen the facility's production portfolio beyond passenger cars to include electric scooters and electric buses.
The expansion is expected to scale up operations at the factory, which is located in the southern Tamil Nadu port city. The project will transform the unit from an electric car plant into a sprawling manufacturing hub for cars, scooters, and buses.
According to documents submitted for environmental clearance, the Phase II ramp-up will increase the facility's total annual production capacity to 2 lakh electric cars, 10 lakh electric scooters, and 2,000 electric buses. The expansion will involve setting up dedicated production lines, workshops, and testing facilities for the new vehicle categories.
The move comes less than a year after VinFast commenced production at its Tuticorin plant and launched two locally assembled electric SUV models for the Indian market. The company has already established itself among India's top five electric car manufacturers by volume.
In the first phase of the 408-acre manufacturing facility, VinFast invested approximately Rs 1,200 crore, creating an annual production capacity of 50,000 electric cars. The company subsequently announced plans in December 2025 to expand its Indian portfolio to include electric buses, e-scooters, and charging infrastructure.
VinFast has repeatedly identified India and Southeast Asia as key pillars of its international expansion strategy. The company's expansion plans aim to cater to the growing demand for electric mobility while aligning with the Indian government's FAME-II and Atmanirbhar Bharat initiatives.
Industry analysts note that India's electric mobility market is unfolding from the bottom up, with two-wheelers accounting for more than half of all battery-powered vehicle sales in the country. Poonam Upadhyay, director at Crisil Ratings, pointed out that the electric two-wheeler segment has reached a structurally higher growth trajectory. This growth is supported by improving cost economics and rising fleet demand.