L-R: Pham Sanh Chau, Vingroup Asia CEO and Prabakaran Andi Saravanan, Associate Vice-President, Guidance Tamil Nadu, at the signing ceremony.

Vietnamese automotive company VinFast has signed a Memorandum of Understanding (MOU) with the Government of Tamil Nadu to expand its existing facility in the SIPCOT Industrial Park in Thoothukudi. The expansion targets the production of electric buses and e-scooters, alongside electric cars.

The Government of Tamil Nadu will allocate approximately 200 hectares (around 500 acres) of land adjacent to VinFast’s existing facility. The state will also provide support for securing permits and establishing infrastructure connections such as electricity, water and road access.

As the second phase of its existing USD 2 billion commitment, VinFast will invest USD 500 million in Thoothukudi to develop dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and related operations. The Government of Tamil Nadu will apply all applicable incentives and financial support measures for this proposed investment.

The existing Thoothukudi facility covers 400 acres and has an initial annual capacity of 50,000 electric vehicles, which is being expanded to 150,000 units.

The initiative is expected to increase supply chain localisation, create additional employment opportunities and support workforce skill development in the region. Since entering the Indian market, VinFast has expanded its comprehensive EV ecosystem spanning manufacturing, distribution, charging infrastructure, aftersales services and battery recycling.

Pham Sanh Chau, Asia CEO, VinFast, said, “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce. VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India’s green mobility goals in the years ahead.”

Dr. T.R.B. Rajaa, Minister of Industries of the Government of Tamil Nadu, said, “We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India. The state government is committed to working closely with VinFast and ensuring favourable conditions throughout the implementation process to deliver lasting benefits for the community and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing ecosystem provides jobs for Tamil Nadu.”

European auto major Stellantis and Tata Motors Passenger Vehicles (TMPV) have marked the 20th anniversary of their 50:50 joint venture, Fiat India Automobiles (FIAPL) and signed a Memorandum of Understanding (MoU) to explore further opportunities in manufacturing, engineering and supply chain operations within India and international markets.

Since its inception, the partnership has produced more than 1.37 million vehicles. The joint venture currently employs approximately 5,000 people and maintains a production capacity of 222,000 vehicles per year.

The FIAPL plant currently manufactures four Jeep models for Stellantis and three passenger vehicle models for Tata Motors. The facility has established operations across vehicle assembly, powertrain production and supply chain management.

Gregoire Olivier, Chief Operating Officer, Stellantis Asia Pacific, said, “FIAPL stands as a testament to what two strong organisations can achieve together. As we commemorate this milestone, we remain focused on evolving the partnership to support future-ready manufacturing, innovation and sustainable growth in the region.”

Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles, added, “Our partnership with Stellantis through FIAPL reflects the strength of a long-standing collaboration built on trust, shared values and a common vision. We look forward to deepening this relationship with Stellantis in the years ahead.”

Tata Motors Passenger Vehicles (TMPV) and its subsidiary Jaguar Land Rover (JLR) have begun operations at a new manufacturing facility in Panapakkam, Ranipet district. The plant is a greenfield development designed to produce internal combustion engine (ICE) vehicles and electric vehicles (EVs) for both brands.

The first vehicle produced at the site is the locally manufactured Range Rover Evoque. The project represents an investment of INR 90 billion and is expected to create 5,000 direct jobs.

The facility covers 470 acres and marks the first phase of a larger manufacturing hub. It is designed to reach an annual production capacity of 250,000 vehicles over the next five to seven years. The site is intended to serve both domestic and international markets, utilising its proximity to Tamil Nadu's ports for exports.

Key Plant Features:

• Sustainability: Guided by carbon-neutral principles, the plant intends to operate on 100 percent renewable energy.
• Manufacturing Scope: Includes assembly for next-generation passenger cars and luxury SUVs.
• Workforce: Focuses on local recruitment and aims for a high share of women employees across levels.

The opening of the Panapakkam plant signals a shift for JLR's Indian operations. The company intends to migrate Completely Knocked Down (CKD) assembly for several models from its Pune facility to this new hub in southern India. This move is designed to enhance operational efficiency and capture increasing demand in the luxury vehicle segment.

M K Stalin, Chief Minister of Tamil Nadu, said, “Tata Group has long played a pivotal role in nation building and shares a deep, historic partnership with Tamil Nadu. With the commencement of operations at this new manufacturing facility and the rollout of the first Range Rover Evoque in Panapakkam, Ranipet, the state is proud to witness the expansion of world-class automotive manufacturing. Tamil Nadu welcomes this significant milestone and remains committed to supporting industries that create jobs, drive innovation, and reinforce our position as India’s leading hub for manufacturing and mobility.”

N Chandrasekaran, Chairman, Tata Sons and TMPV, added, “The inauguration of our Panapakkam facility marks a significant milestone in the Tata Group’s journey to accelerate India’s leadership in sustainable and future-ready manufacturing. We are also proud to deepen our long-standing partnership with Tamil Nadu, a state that continues to drive industrial excellence, innovation, and inclusive growth. With this facility, we look forward to producing vehicles of exceptional quality, craftsmanship, and technology for customers in India and around the world.”

Skoda Auto Volkswagen India (SAVWIPL) has achieved a new production milestone of rolling out 50,000 units of the Skoda Kylaq from its Chakan facility.

The Kylaq, the company stated, has contributed 36 percent to the Group’s YoY growth in 2025. It achieved this volume by expanding its operations and increasing the use of domestic components.

To support the production of the Kylaq, SAVWIPL increased the capacity of the Chakan plant by 30 percent. The vehicle is built on the MQB-A0-IN platform, a chassis architecture designed for the Indian market. The group has focused on localisation and the development of a local supplier network to support its manufacturing output.

The milestone follows 25 years of the group's presence in India, during which it has developed an integrated ecosystem and a local talent pool. By increasing production and localisation, the company aims to support the government’s manufacturing initiatives while deepening its engineering and sourcing capabilities within the country.

H D Kumaraswamy, Union Cabinet Minister of Heavy Industries and Minister of Steel, said, “I congratulate Skoda Auto Volkswagen India on achieving this production milestone and for their continued commitment to the ‘Made in India’ initiative.”

Piyush Arora, MD & CEO, Skoda Auto Volkswagen India, said, “The 50,000‑unit milestone for the Kylaq reflects the deep trust and affection our customers have shown for this product. Built on the proven MQB‑A0‑IN platform, the Kylaq’s success is a powerful validation that vehicles designed in India, both for India and the world, continue to earn admiration and confidence from customers domestically and globally.”

Hindalco Industries has announced an INR 210 billion expansion of its aluminium smelter in Sambalpur, Odisha. The project will add 360,000 tonnes per annum of capacity to the Aditya Aluminium complex. Additionally, the company has commissioned a manufacturing facility for flat rolled products (FRP) and battery-grade aluminium foil following an investment of INR 45 billion.

The facilities form part of a growth programme involving INR 370 billion of planned expenditure in Odisha. The battery-grade foil plant is intended to provide raw materials for the production of lithium-ion cells, with a capacity to support 100 GWh of manufacturing. The expansion of the FRP unit aims to reduce India’s reliance on imported flat-rolled aluminium, which currently accounts for 40 percent of domestic consumption.

The smelter expansion incorporates plans to use round-the-clock renewable energy for a portion of its power requirements. This project connects upstream resources with downstream manufacturing, linking bauxite mining and alumina refining to the production of foil and high-grade materials. The company expects the next phase of investment to create 15,000 jobs in the region, adding to its current workforce of 23,000 in the state.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “India’s manufacturing growth depends on integration, value addition and sustainability. Through Hindalco, we are building a fully integrated aluminium ecosystem that spans from upstream resources to high-value downstream products. Our long-standing partnership with Odisha continues to play an important role in this journey. This strategy strengthens India’s self-reliance, supports critical sectors, and accelerates the nation’s transition towards advanced, sustainable manufacturing.”

Satish Pai, Managing Director, Hindalco Industries, added, “The FRP expansion and smelter growth at Sambalpur exemplify our integrated upstream–downstream growth strategy. This enables Hindalco to deliver high-quality aluminium solutions across packaging, defence, electric mobility, renewable energy and advanced manufacturing, positioning us strongly to support India’s industrial ambitions while creating long-term value.”

Hindalco’s roadmap in Odisha includes the Kansariguda alumina refinery, the Meenakshi coal mine, and units for white fused alumina. The company has invested over INR 250 billion in the state over the last 15 years. These developments are part of a wider INR 550 billion capital expenditure plan across India.