Tamil Nadu’s EV Manufacturing Sector Success – Rs 30,000 Crore Investments Secured

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The state of Tamil Nadu has secured investments worth ₹30,000 crore in electric vehicle manufacturing and related sectors, according to reports.

The state has managed to attract EV manufacturing investments with strong incentives. Hosur and Krishnagiri are emerging as EV manufacturing hubs, joining the likes of the Sriperumbudur and Oragadam corridors in the Western region.

Ola Electric, Ather Energy, and Ampere Electric have established sizeable manufacturing facilities in the state for electric two-wheelers. TVS Motor Company is also producing electric products and plans to expand capacity at its Hosur factory.

A senior government official is reported to have told media that conservative estimations for committed investments in electric vehicle sector would be around ₹30,000 crore. Moreover, they expressed optimism about securing a significant portion of total proposed investments currently being discussed.

The government is creating industrial infrastructure for the EV industry due to increasing interest from companies wanting to set up in the state.

EV companies are eyeing Hosur and Krishnagiri for setting up their production units due to the vicinity to Bengaluru, the IT capital of India that offers advantages in software and IT systems. Accordingly, SIPCOT is now constructing a Future Mobility and E-Vehicle Park spanning 300 acres at SIPCOT Industrial Park, Shoolagiri, Krishnagiri District with an estimated cost of ₹300 crore to cater to such companies.

The UK High Commission helped create a plan for the Future Mobility Park’s development.

The EV park could include facilities for producing EVs, drones, autonomous vehicles, and their components, as well as advanced cell manufacturing, power electronics, sensors, PCBs, and electric motors.

Chennai’s manufacturing corridor hosts auto component and electronics industries, and the state plans to establish an EV park in Thiruvallur.

In a year, two electric vehicle parks will be ready with available land parcels for companies. Infrastructure will be created during this time, officials have told media.