Vietnamese electric vehicle manufacturer VinFast has proposed a Phase II expansion worth Rs. 70 billion (US$ 732 million) at its manufacturing complex in Tuticorin, Tamil Nadu, broadening its production portfolio beyond passenger vehicles to include electric scooters and buses.

The expansion is expected to increase operations at the facility in the southern port city and transform it from a dedicated electric car plant into a manufacturing centre for electric cars, scooters and buses.

According to documents submitted for environmental clearance, VinFast plans to increase total annual production capacity to 200,000 electric cars, 1,000,000 electric scooters and 2,000 electric buses. The expansion is intended to support growing demand for electric mobility and align with government initiatives such as FAME-II and Atmanirbhar Bharat.

The development comes less than a year after production commenced at the Tuticorin facility and the company introduced two locally assembled electric SUV models for the Indian market. Following its entry into the country's top five electric vehicle manufacturers by sales volume, VinFast is now expanding into additional vehicle segments.

The company invested approximately Rs. 12 billion in the first phase of the 408-acre manufacturing facility, which currently has an annual production capacity of 50,000 electric cars.

In December 2025, VinFast announced plans to broaden its Indian portfolio beyond passenger vehicles to include electric buses, electric scooters and charging infrastructure. The proposed expansion includes production lines, workshops and testing facilities for the additional vehicle categories.

VinFast has identified India and Southeast Asia as key markets within its international growth strategy. The expansion also reflects broader developments in India's electric mobility sector, where electrification extends beyond passenger vehicles. Unlike China, where electric passenger cars dominate the market, India's transition is driven largely by two-wheelers, which account for more than half of all battery-powered vehicle sales.

Poonam Upadhyay, Director at Crisil Ratings, stated that the electric two-wheeler segment has entered a higher growth phase, supported by favourable operating costs, increasing fleet demand and stronger commitments from vehicle manufacturers. Public transport is also emerging as a growth area, supported by government programmes.

For Tamil Nadu, VinFast's expansion further strengthens the state's position as an electric vehicle manufacturing hub. With its established network of automotive suppliers, manufacturers and export-oriented facilities, Tamil Nadu continues to attract global manufacturers seeking production bases in Asia.