TN expects EV investment in the state to double to Rs 80,000 crore in two years

Tamil Nadu will witness investments in the state’s electric vehicle space double over the next two years from the current cumulative Rs 40,000 crore, said Dr TRB Rajaa, Tamil Nadu Minister for Industries, Investment Promotion and Commerce Department. He was speaking on Tuesday at the India EV Conclave organised by Autocar Professional with various TN government ministries and departments.

“Our robust EV policy is attracting both global and domestic EV incumbents as well as legacy players looking to expand their investments in the state,” he said.

Rajaa said that the state is trying to explore various opportunities and overcome challenges in the e-mobility domain by fast-tracking investments in the sector through MoUs and ensuring that businesses take off in less than 6-10 months from the planning stage.

The government claims that Tamil Nadu is the EV Capital of India with close to 50 percent of the electric vehicles in India manufactured in the state.

Rajaa noted that there could be some big investment announcements in the electric vehicle space during the Tamil Nadu Global Investors Meet, which is scheduled for January 7-8, 2024. “When any investor walks into India, the first door they knock is Tamil Nadu,” he said.

He added that the state is looking to invite global electric vehicle companies to set up their R&D centres and set up a base in Tamil Nadu. “Our aim is to make the state a knowledge hub and an R&D hub for Southeast Asia,” he said.

"We want to build EV charging infrastructure, R&D and component manufacturing. The biggest innovation happens at the nuts & bolts level at the bottom. MSMEs need ecosystem innovation & that's where Tamil Nadu stands to give access to the same," he said.

Rajaa noted that the state has a strong base in electronics manufacturing, pegged at around USD5.37 billion last year. The base in electronic manufacturing augurs well for more electric vehicle companies to set up base in the state, he added.

The government intends to rapidly expand the charging infrastructure to alleviate consumer range anxiety.

The government targets expanding its current 300-350 charging stations by five-fold over the next few years. It plans to do this through robust coordination between the state's various departments and oil marketing companies.

“Currently, we don’t have enough electric vehicle charging facilities in the state. But in a short period, you are going to see a multi-fold expansion in the state’s charging infrastructure,” Rajaa said.

The government plans to launch an EV Portal, which will integrate all charging stations in the state.

“What we want to correct is EV adoption, and we want to provide consumers with more charging stations and eliminate range anxiety,” he emphasised.

Tamil Nadu government is also working on a scrapping policy for the state that will encourage consumers to give up their old vehicles while also incentivising consumers to switch to EVs and decarbonise road transportation, he added.

Raja stated that, as part of the green energy transition, the state will take the lead as the country's hydrogen capital, with three new contracts signed with leading firms to scale up the hydrogen ecosystem.

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