Vietnamese carmaker Vinfast announced today that it plans to open an electric vehicle factory in India, the world's third-largest car market.
The plant to be built in the southern Indian state of Tamil Nadu is the company's first foray into India and follows Vinfast's launch of sales in the US and other major markets.
According to the company's deputy chief marketing officer Tran Mai Hoa, the plan underscores the company's commitment to "the vision of a zero-carbon transportation future."
The company said in a statement that it plans to invest $500 million (€450 million) in the first phase of construction and plans to transform the region around the port city of Tutukudi into a "major hub for the production of electric vehicles."
The factory will have the capacity to produce 150.000 cars per year, according to the announcement.
India is one of the fastest growing electric vehicle markets in the world, the government has launched a $1,3 billion federal plan to encourage the production of electric vehicles and provide discounts for customers.
The plan is part of an effort by Indian Prime Minister Narendra Modi, who is seeking a third term in elections this year, to create new jobs in India.
The Vinfast company is an integral part of Vingroup, a large business conglomerate that started as an instant noodle factory in Ukraine, founded by its current director and the richest man in Vietnam, Phan Nhat Vuong.
The company aims to enter 50 markets worldwide by the end of this year.
In October, it announced plans to build a $400 million electric vehicle factory in Indonesia.
The company has begun shipping electric vehicles made in Vietnam to neighboring Laos to serve the needs of Grin SM, an EV taxi operator owned by VinFast's founder.
Although it has struggled to sell its electric vehicles in the US and its early cars received bad reviews, the company says it can succeed in the US market.
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