Tamil Nadu to set up exclusive park for EVs, targets Rs 50k-cr investment

The state plans to create 150,000 jobs with a comprehensive EV ecosystem in the state


Tamil Nadu | Electric Vehicles | Investment

Tamil Nadu is planning to set up a park exclusively for the electric vehicle production eco-system. This will be the country’s first electric vehicle park. The state is targeting around Rs 50,000 crore investment in the EV segment and announced a series of incentives to attract investments in the EV space.

Speaking at the Auto CXO Roundtable, Neeraj Mittal, MD & CEO at Guidance Bureau, Tamil Nadu, said that the vision of Tamil Nadu government is to attract Rs 50,000 crore investment and to create 150,000 jobs with a comprehensive EV ecosystem in the state.

Last year, Tamil Nadu announced a comprehensive EV policy, which gives incentives and subsidies for both supply side and demand side. The policy covers the EV ecosystem with incentives to EV charging stations developers and to tap components including battery and cell manufacturing, electric motors, EV powertrains, battery management among others.

“We are also looking to set up an EV park which will spread across 300 acres of land,” said Mittal, adding that the state offers various incentives including 100 per cent GST reimbursement, 50 per cent capital subsidy among others to attract investments.

He said that Tami Nadu is a nerve center of the auto sector with a good eco-system, renewable energy and R&D base.

The automobile and tech sector have invested profusely in Tamil Nadu. These investments have facilitated economic growth in the state and have helped it in becoming a flag bearer of the EV infrastructure in India, said Mittal.

Recently the company has signed MoUs with EV makers and suppliers including Ather Energy, MAHLE Electric, BYD among others.

Mittal said the state accounts for 35 per cent of the country’s auto component production and nearly 30 per cent of four-wheeler manufacturing is from the state. Currently Tamil Nadu is home for nearly 20 OEMs covering all auto segments and over 350 auto component players and over 4,000 SMEs under Tier-IV in the state.

The state has got installed production capacity to produce 1.71 million passenger vehicles and 4.82 million two-wheelers every year.

During the pandemic, the state signed MoUs worth Rs 30,664 crore, of which Rs 3,500 crore are from the auto sector.

“Tamil Nadu is a heaven for the auto sector and it will lead the recovery also,” said Mittal.