Hanoi | Vietnamese automaker VinFast says it plans to spend up to USD 2 billion to build an electric vehicle factory in India, the world's third-largest auto market by sales.

The factory in southern India's Tamil Nadu state will be the company's first foray into India and follows VinFast's launch of sales in the United States and other major markets.

The plan highlights the company's commitment to a “vision of a zero-emission transportation future,” Tran Mai Hoa, the company's deputy CEO of sales and marketing, said in a statement.

VinFast said it is committing USD 500 million in the first phase of construction and plans to transform the region around port city of Thootukudi into a “first-class electric vehicle production hub.” The factory will have a capacity to roll out 150,000 cars annually, it said. It gave few other details.