The state of Tamil Nadu in India is leading the country’s clean mobility transformation, driven by its early policy vision, manufacturing infrastructure, and commitment to become a global hub for electric vehicle production. The Murugappa Group, a 125-year-old company, is at the forefront of this transformation, having developed four EV platforms and targets $1 billion in revenue from the electric vehicle business by 2029. The company has also set up a dedicated manufacturing facility for electric small commercial vehicles (e-SCVs) in Ponneri, Chennai.
According to Arun Murugappan, Chairman of the Murugappa Group, Tamil Nadu’s leadership in EV manufacturing is a result of its first EV policy in 2016, which was followed by a more forward-looking policy update in 2023. The policy aims to attract over Rs 50,000 crore in investment and build a sector valued at $40 billion by 2030.
However, the company’s Chairman also highlighted the need for continued support from the government, particularly in terms of subsidies and targeted interventions. He emphasized that the initial cost of switching to EVs is high, but the running costs are much lower, making it essential to provide a subsidy initially and then withdraw it after some time.
Another critical gap in India’s EV roadmap is the lack of charging infrastructure, with Murugappan pointing out that there is a long way to go in terms of developing charging infrastructure. He suggested that the government could provide land for charging infrastructure development, such as through Industrial parks.
Overall, Tamil Nadu’s leadership in EV manufacturing is a testament to the state’s commitment to clean mobility, and the Murugappa Group is playing a significant role in this transformation. However, continued support from the government and development of charging infrastructure are critical for driving mass adoption of EVs in India’s commercial sectors.