The inside story of an unconventional pitch, political hustle, and policy playbook that secured India’s biggest greenfield EV investment for the state.
27 Mar 2025 | 25969 Views | By Ketan Thakkar & Darshan Nakhwa
It began with a message. Not from a high-level summit. Not from a trade show. But from a quiet ping on LinkedIn.
That one message triggered a chain of events that would culminate in one of India’s most significant greenfield EV investments—a Rs 16,000 crore commitment from Vietnamese EV ...
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It began with a message. Not from a high-level summit. Not from a trade show. But from a quiet ping on LinkedIn.
That one message triggered a chain of events that would culminate in one of India’s most significant greenfield EV investments—a Rs 16,000 crore commitment from Vietnamese EV major VinFast, expected to create over 7,000 jobs in Tuticorin, Tamil Nadu.
Behind the scenes of this remarkable deal was the relentless drive and strategic acumen of TRB Rajaa, Tamil Nadu’s Minister for Industries.
“It started with a LinkedIn post,” Rajaa recounted in his fireside chat with Hormazd Sorabjee, Editor of Autocar India at the Future Powertrain Conclave in Chennai on Wednesday. “Somebody reached out to me via LinkedIn. It’s still there, so it’s real.”
A Deal Almost Lost
By late 2023, VinFast’s entry into India was nearly a done deal—with another state. Tamil Nadu, often referred to as India’s automotive capital, was on the verge of losing what would become a defining investment for its electric vehicle (EV) ecosystem.
However, Rajaa wasn’t ready to let it slip away.
“I told the Chief Minister this may not happen. He asked, ‘Why aren’t you going there?’ I said, ‘You think I should?’ And he said, ‘Yes, go and try.” Within two days, Rajaa was en route to Vietnam, armed with an understanding of what VinFast needed—and a clear strategy to win them over.
1,000 Calls, One Vision
Rajaa spent three intense days in Vietnam. With the Guidance Bureau of Tamil Nadu working around the clock, the team developed a comprehensive offer that encompassed site selection, logistics, workforce planning, and incentive structure, all while negotiating across multiple time zones.
However, even as talks intensified, nature threw a curveball. Tamil Nadu’s coastal districts, including Tuticorin, were hit by record rainfall—over a meter in some areas.
“Tuticorin was flooded. But I told them—This is exactly why you need to invest here. Climate change is real. This is why we need EVs. And Tamil Nadu is the greenest state in India—with over 50% renewable energy, moving toward 70%.”
Rajaa with Autocar India's Hormazd Sorabjee at the Future Powertrain Conclave on Wednesday
VinFast’s Aggressive Plans
VinFast is investing Rs 16,000 crore to establish an integrated electric vehicle (EV) manufacturing plant in Thoothukudi, Tamil Nadu, marking its largest greenfield project in India. The facility will produce electric SUVs, including VF 6, VF 7, and VF 9, with VF e34 also being evaluated for the market. VinFast has also showcased two-wheelers like the Klara S, Evo200 scooters, and the DrgnFly e-bike, signaling a broad product strategy.
Beyond manufacturing, VinFast aims to build a complete EV ecosystem in India. This includes developing a local supply chain, R&D collaborations, and a nationwide charging network. By leveraging Tamil Nadu’s strong automotive and electronics base,
Policy with Purpose
Rajaa’s pitch wasn’t just about land and logistics. It was about Tamil Nadu’s deeper story—policy continuity, a skilled workforce, and a state that prioritizes jobs over headlines.
“For us in Tamil Nadu, it’s never about investment numbers. It’s about jobs. It’s about inclusive growth, about where those jobs are created and who benefits.”
This isn’t rhetoric. The state produces over 150,000 engineering graduates each year. It is home to legacy OEMs and tier-one suppliers, including TVS, Hyundai, Daimler, Renault-Nissan, and now, EV leaders such as Ola Electric, Ather Energy, and Ampere.
“70% of all EV two-wheelers sold in India are manufactured in Tamil Nadu,” says Rajaa. “That tells you something.”
VinFast: A Statement of Intent
The VinFast deal, in many ways, is a symbol of Tamil Nadu’s industrial agility. The project progressed from Memorandum of Understanding (MoU) to groundbreaking in just weeks. The factory is slated to open in early 2025—an unheard-of timeline for a project of this scale.
“Nobody believed us,” Rajaa says with a smile. “But we broke ground in January 2024. And we’re opening in 2025. It has never been done anywhere else in the world.
Driving the Future
As India’s auto industry straddles two eras—ICE and EV—Tamil Nadu stands as a model for how legacy and innovation can coexist. It’s not just the land or the ports. It’s the people, the policy, and the passion of leaders like TRB Rajaa that make the difference.
“We’re betting on EVs. But we’ll never let go of ICE until it’s time. We’re playing a balanced game. And we’re building for the next generation.”