Tamil Nadu aims to be a preferred EV base with new parts and future mobility hub

The Tamil Nadu government is set to establish Electric Vehicle (EV) and Future Mobility Parks, each spanning 300 acres, to accelerate EV production in the state. According to the Tamil Nadu Government's Industry Department Policy Note 2024-25, presented by its Industries Minister TRB Rajaa, the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) is developing an additional E-Vehicle Park spread over 300 acres at Manallur to attract new investments in the EV sector.

Additionally, a Future Mobility Park is being created on 300 acres in Shoolagiri, Krishnagiri District, with an estimated cost of Rs 300 crore to support sustainable and modern transportation solutions.

So far, 13.43 acres have been allotted to five industrial units, and core infrastructure including roads, water supply, and storm water drains are being established.

The Future Mobility Park will feature special facilities such as a two-lane testing track for EVs, drones, and autonomous vehicles, along with research and testing facilities, plug-and-play options, shared storage, and various amenities for all stakeholders.

The Policy Note highlighted that the state's progressive policies have significantly boosted balanced growth across regions, with sectoral policies and region-specific incentives attracting key investments in South Tamil Nadu. Vietnamese EV automaker VinFast and several global green hydrogen players have chosen South Tamil Nadu for their investment projects, while the Western region's EV clusters have produced over 40% of India's EV output. According to the Annual Survey of Industries 2021-22,  Tamil Nadu's motor vehicles and trailers sector is estimated to produce around Rs 2.02 lakh crore, accounting for 23.34% of the country's total output share.

The state also leads in women's employment in manufacturing, with 42% of the country's total women factory workforce. Notably, the Ola factory in Krishnagiri, the world's largest facility for electric two-wheelers, employs women for 100% of its manufacturing activities. Tamil Nadu's rise as India's EV capital was further cemented when it was recognised as the leader in EV manufacturing by the India Energy Storage Alliance (IESA) for 2023.

The state currently accounts for nearly 40% of all EV investments in India, with Rajaa, the Minister for Industries, Investment Promotions and Commerce, aiming to double this figure in the next two years.

This feature was first published in Autocar Professional's July 15, 2024 issue.