Tamil Nadu has grown into a promising hub for EV manufacturing in India with 100 percent tax exemption
Electric Vehicle (EV) revolution has surely kicked in recently with many EV startups and manufacturers scaling up their operations in recent times. This has been boosted by the fact that the central and many state governments have drafted in respective EV policies that offer incentives to companies as well as buyers in order to encourage sales of EVs.
Tamil Nadu, like many other states, has been trying to pitch itself as a potential EV manufacturing hub. Hence it is on radar of several EV brands and startups who are looking to expand their production capacity with tax concessions in picture. The latest brands in line are Ampere Electric and Okinawa.
According to a report, Ampere and Okinawa are looking to make fresh investments in Tamil Nadu. Both brands have demonstrated immediate or long term interest in investing in the Southern state. Principal Secretary of Tamil Nadu, N Muruganandam, recently stated that the state government is under discussions with several EV manufacturers including Ampere Electric.
Ampere, Okinawa look to invest in Tamil Nadu
Ampere, a subsidiary of Greaves Cotton, is planning to invest around INR 400 crore in order to expand its existing capacity to 2.50 lakh units per annum. Currently, the company is running a facility with an annual production capacity of 50,000. The company will decide on the investment depending on incentives offered by Tamil Nadu government.
Other than Ampere, Okinawa as well is thinking of investing in Tamil Nadu as 60 percent of its sales come from the southern states of which Tamil Nadu itself accounts for 20 percent alone. The company is seriously considering setting up an assembly line in Tamil Nadu, its second in the country after the Bhiwadi-based plant in Rajasthan.
Other prospective brands in line
Tamil Nadu government recently announced its decision to offer a 100 percent tax exemption to all electric vehicles. This has attracted many other EV as well as charging companies to set up their business here.
In a few years time, Hyundai Motor Company and Groupe PSA, which have their respective Hyundai and Citroen manufacturing facilities in the state, could also assemble EVs here. The former could also announce investments to manufacture EVs under its Hyundai Smart EV project in future here in Tamil Nadu.
At some point American automaker, Ford could also manufacture EVs at its Tamil Nadu facility with platforms and powertrains licensed from Mahindra Electric. More electric mobility solutions providers such as Sun Mobility which is known for installation of charging infrastructure and swappable batteries will also look to set up its operation in the southern state.