The company also aims to hire 2000 individuals before 2025.
DAO EVTech, a smart electric mobility manufacturing startup with a Make In India focus, has proposed to invest Rs 100 crore in Tamil Nadu.
Dr. Michael Liu, Chairman and CEO of DAO EVTech, stated that the "Tamil Nadu market is crucial to any EV two-wheeler manufacturer during the launch event. There are three basic reasons for this. The first is Tamil Nadu's capital Chennai has the highest two-wheeler penetration rate of 73%, which is nearly double that of other major cities such as Mumbai and Bangalore. EV is a growing business that is more focused on young individuals who embrace technology quickly, and the state has a large population, making Tamil Nadu an EV-friendly state. Any quality product supplier, like DAO, is encouraged to enter this market by the state's welcoming culture and its citizens' attention to detail, commitment to excellence, and logical analysis. We will continue investing $100 million in India, and in 2023, we'll set aside $20 million for the development of novel products. With this $100 million investment, we have specifically set aside Rs. 100 crores for Tamil Nadu. With our expansion strategy, we expect to generate 2000 new positions over the next two years.”
India is involved in the global EV shift, he continued. The EU has set a goal for its member states to switch to 100% electric vehicles by the year 2035, while China has already reached a 4W EV penetration rate of 40% and the United States is committed to achieving 50% EV penetration by that same year. With the strongest intellectual assets, the largest population, and the third-largest vehicle market in the world, India is unquestionably spearheading this transformation. Yet, given that India is the largest 2W market in the world with a per capita GDP of $2400 and a registration rate of 90% 2W vehicles, this transition will be unique in India starting today. According to market analysis by McKinsey & Company, the Indian market would grow 20 times over the next four years, reaching 9 million electric vehicle units by 2030. We are currently witnessing market expansion. On a volume basis, the market increased three times last year. The traditional trade model is being replaced by other competitive players as the EV 2W market diversifies.
DAO EVTech already has active dealerships in Madurai, Polachi, Coimbatore, and Thanjavur in Tamilnadu state. In particular, the 20 dealerships that DAO had planned to open in Chennai will all be able to do business within the next few months. DAO is now focusing on building and developing the dealership's connecting power; it will soon grow significant cities like Chennai as its centre for regular demand fulfilment in nearby Tier 2 and Tier 3 cities.
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