Tamil Nadu’s EV ecosystem to expand by 2024
BUSINESS: With the foundation stone laying ceremony of Tata Motors-JLR’s plant on September 28, Ford Motor planning to return with electric vehicle (EV) plans and Vinfast expected to inaugurate it next year, Tamil Nadu is fast emerging as India’s EV hub. In the two-wheeler sector, three of the top five EV makers—Ola Electric, TVS Motor and Ather Energy—are already based in the state. Meanwhile, Hyundai, another major passenger vehicle maker, has already chalked out a Rs 20,000 crore roadmap for its Chennai unit. In 2024, EV investment commitments have already come from Tata Motors-JLR (Rs 9,000 crore), Vinfast (up to $2 billion) and Royal Enfield (Rs 3,000 crore), apart from expansion plans from Hyundai and Stellantis (Rs 2,000 crore).
Interestingly, the state already accounts for 70 per cent of the total EV two-wheeler manufacturing in India, with a current production capacity of 10 million units. Also, in April, Citroen became the first multinational carmaker from India to export domestically manufactured electric vehicles to the international market by exporting the Ë-C3 manufactured in Tamil Nadu. According to industry experts, more than anything else, the presence of over 1,500 factories manufacturing autos and auto components is becoming a key advantage for the state. This established ecosystem allows new players to join easily.
Thiru Srinivasan, senior consultant for electric vehicle sector at FemTN, said, “Both Tata Motors-JLR and Vinfast are export-focused, which makes them very important for the state. However, it also needs to build a strong sub-unit ecosystem. The state has a first-mover advantage with existing infrastructure in the Hosur region.” Tamil Nadu Chief Minister MK Stalin will lay the foundation stone for the Tata Motors-JLR plant at Panpakkam in Ranipet district on September 28. This will be the first time a premium vehicle will be completely manufactured in India instead of being assembled. The unit is expected to become operational after 12-18 months. Tata Motors is set to produce “Made in India” models based on JLR’s Electrified Modular Architecture (EMA) for export as well as Tata EVs based on the same architecture.
