Coimbatore, Trichy, Tirunelveli, Madurai, Salem, and Chennai are the top six regions in Tamil Nadu identified by the state cabinet as EV manufacturing hubs in India.
Tamil Nadu, one of Asia’s fastest-growing electronics and automobile manufacturing hubs, is undertaking various strategies to solidify its position in the electric vehicle manufacturing industry. For instance, VinFast, the Vietnamese EV maker, has announced plans to set up a $2 billion EV facility in the state, and the recently announced Tata Motors-JLR unit will commence operations on September 28.
Madras became Chennai in 1996, earning the ‘Detroit of Asia’ status. Interestingly, Detroit’s Ford also expressed its interest in starting its operations in Chennai with new EV plans. According to market researchers, favourable industrial policies unleashed in 2014, seamless supply-chain networks, and a proficient workforce have magnetized EV and conventional car manufacturers worldwide.
Reports indicate that around 40 per cent of EVs, two-wheelers, three-wheelers, and cars are manufactured and assembled in Tamil Nadu. For instance, Ater, Ola, TVS, and Royal Enfield all manufacture their motorcycles in Tamil Nadu. With a production capacity of over 10 million units, Tamil Nadu sets its foot high again with 70 per cent of the total manufacturing of EV two-wheelers. On the other hand, South Korea’s leading car manufacturer, Hyundai, is also chalking out a Rs 20,000 crore strategy for its new unit in Chennai.
Speaking about the overall investments, the state already grabbed Rs 9000 Crore from Tata-JLR, $2 billion from VinFast, Rs 3000 Crore from Royal Enfield, and an added expansion plan of Rs 2000 crore from both Hyundai and Stellantis. In April, French automobile firm Citroen became the first global brand to export ‘Made-in-India’ electric vehicles worldwide.
