Vingroup signs $6.5 billion Maharashtra pact to explore EV, urban and energy projects

Vietnam’s largest conglomerate Vingroup on Friday signed a memorandum of understanding with the Government of Maharashtra to explore investments worth $6.5 billion aimed at building a multi-sector ecosystem in the state.

The agreement focuses on expanding Vingroup’s presence in India, where its electric vehicle unit VinFast operates a manufacturing facility in Tamil Nadu. The company has also stated plans to build a $3 billion ecosystem in Telangana.

As part of the agreement, Vingroup will explore investments across sectors including urban development, electric mobility, renewable energy and public infrastructure in Maharashtra.

In urban development, the company is considering integrated townships spanning roughly 1,000 hectares near Mumbai at an estimated investment of about $5 billion. In electric mobility, it plans to deploy a fleet of 60,000 electric taxis at a $1.5 billion investment.

Vingroup did not provide details on the investment disbursement timeline, but said the plan is expected to create tens of thousands of jobs over the next three to five years.

Maharashtra is India’s largest state economy, accounting for about 14% of the country’s GDP. Major domestic electric vehicle players such as Mahindra & Mahindra and Tata Motors have a strong manufacturing presence in the state.

Vingroup’s operations span industrials, real estate and green energy. The company has been expanding into overseas markets, with India identified as a key strategic priority.

(With inputs from Reuters)