Targeting $1 bn EV revenue by 2030, Murugappa opens a battery plant to reduce China dependence and boost localisation.
The Murugappa Group has stepped up its electric vehicle ambitions by inaugurating a battery plant aimed at reducing dependence on imports from China. The initiative forms part of its broader strategy to localise production and achieve $1 billion in revenue by 2030 through its EV arm, TI Clean Mobility.
The Chennai-based conglomerate is scaling up operations across four EV divisions: passenger three-wheelers, small commercial vehicles, electric trucks, and electric tractors. Its brand, Montra Electric, is leading efforts to establish a self-reliant ecosystem in India.
“Every business will have its own journey towards profitability. Products which scale quickly, such as the truck business, will achieve profitability sooner,” said Jajal Gupta, Managing Director of Montra Electric. The company has already launched more than 10,000 three-wheelers and is preparing to expand into small commercial vehicles and tractors.
TI Clean Mobility’s new battery facility, established with Tube Investments of India Ltd, will manufacture lithium-ion batteries to cut reliance on Chinese imports. The plant will also support Montra’s EV range by ensuring stable supply and cost efficiency.
Despite significant investment in R&D and manufacturing, the EV division has been incurring rising losses. TI Clean Mobility recorded revenues of ₹5.5 billion in FY24 and has set a target to cross ₹11.16 billion in FY25. To fund expansion, it has raised ₹30 billion from the State Bank of India, Multiples Private Equity, and other investors.
Industry experts note that localisation is crucial for Indian EV makers amid global supply chain disruptions. Murugappa’s expansion underlines its confidence in long-term demand for electric mobility, even as the path to profitability remains challenging.
