From Tata Motors-JLR to Ford, Tamil Nadu's EV ecosystem expands in 2024

Tamil Nadu is swiftly emerging as India’s electric vehicle (EV) hub, with significant developments on the horizon. The foundation stone ceremony for Tata Motors-JLR’s plant is scheduled, signalling a major investment in the state’s EV infrastructure. Additionally, Ford Motor Company is planning to return with new EV initiatives. VinFast is expected to inaugurate its facility next year. The state already hosts leading two-wheeler EV manufacturers, including Ola Electric, TVS Motor, and Ather Energy. Hyundai is also expanding with a roadmap of US$ 2.39 billion (Rs. 20,000 crore) for its Chennai unit. In 2024, notable EV investment commitments include Tata Motors-JLR US$ 1.07 billion (Rs. 9,000 crore), VinFast up to US$ 2 billion, Royal Enfield US$ 358.1 million (Rs. 3,000 crore), and Stellantis US$ 238.7 million (Rs. 2,000 crore).

Tamil Nadu accounts for 70% of India’s EV two-wheeler manufacturing, with a current production capacity of 10 million units. Citroën recently became the first multinational to export domestically made EVs, with the Ë-C3 produced in Tamil Nadu. The state benefits from over 1,500 auto and auto component factories, facilitating integration for new players. Tamil Nadu Chief Minister Mr. MK Stalin will lay the foundation stone for Tata Motors-JLR's plant in Panapakkam on September 28, marking a milestone as India’s first premium vehicle manufacturing unit. The plant is expected to commence operations within 12–18 months, focusing on “Made in India” models. Tamil Nadu's advantages include a trained workforce, a robust supply chain, and comprehensive infrastructure, contributing 36% of India’s two-wheeler production, 25% of four-wheeler production, and 40% of tyre production.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.