Tamil Nadu is set to put itself at the forefront of India’s EV manufacturing industry. In line with the central government’s ambitious plans shifting to EVs, the Southern state is planning a special electric vehicle manufacturing zone to create an EV ecosystem.
According to a smartinvestor.in report, the new development comes from Neeraj Mittal, the and MD & CEO of Guidance Bureau, Tamil Nadu’s investment promotion agency. Speaking at the Auto CXO Roundtable recently, Mittal revealed that the state is considering a 300-acre EV park and various incentives including 50% capital subsidy and 100% GST reimbursement among others to attract investments.
In Mittal’s words, Tamil Nadu’s vision is to get investments worth INR 50,000 crore and create 1.5 lakh jobs by setting up the EV ecosystem. Several companies have already lined-up investments for EVs and related components in the state.
In November 2019, Mahle Group increased its holding in the former JV Mahle Letrika Roots India from 50 to 90% and announced that it would start manufacturing electric two- and three-wheeler traction motors and control units in Tamil Nadu from 2020. In December 2019, electric scooter company Ather Energy announced that it would start manufacturing its EV and their batteries in the state. The company will invest around INR 600 crore for the same.
In the near- to mid-term future, Hyundai could make a big announcement for EV manufacturing. The company is expected to invest heavily in India to manufacture low-price electric cars. In the coming years, 2-3 new Hyundai electric cars are expected to be launched in India under the ‘smart EV’ project, and they will be manufactured in India for domestic sales and exports, going by reports. Currently, the Hyundai Kona Electric is assembled from knocked-down kits shipped from Ulsan, South Korea, in Sriperumbudur, Tamil Nadu.