Tamil Nadu to get Rs 50,000 cr investments in EV sector by 2025: Minister

Tamil Nadu will by 2025 get around Rs 50,000 crore as investments in the electric vehicle (EV) sector, generating around 150,000 jobs, said a senior minister on Tuesday.

The investments will help the state in achieving its sustainable development goals, said T R B Rajaa, minister for industries, investment promotion, and commerce.

EV companies contributing to large-scale production in Tamil Nadu include Ola Electric, TVS Motor, Ather in Krishnagiri, Ampere Vehicles (Greaves Electric) in Ranipet, BYD India in Kancheepuram, Stellantis (PCA Automobiles) in Tiruvallur, and E-Royce Motors in Coimbatore.

“Our state is policy driven and has a clear vision of inclusive, sustainable growth. Tamil Nadu is among the few states with a future-ready EV policy,” said Rajaa. The policy, which is backed by the ‘Battery-as-a-Service’ initiative, has paved the way for "revolutionary changes" in the way people will commute. Subsidies are on offer for firms installing battery-swapping stations, apart from concessions for equipment cost and machinery purchase.

“Here in Tamil Nadu, the government is inculcating a climate common sense into our people. It is an inherent understanding as to what is good for the environment and what is not. It reflects a practical and informed approach to addressing climate change that is based on a shared understanding of scientific evidence and the need for collective, responsible action,” he said.

The EV segment will be an important component in the Department of Industries, Investment Promotion, and Commerce’s contribution to make the state a $1 trillion economy by 2030. The sector will get "tremendous visibility" at the Tamil Nadu Global Investors Meet to be held on January 7 and 8, 2024. Global EV companies will attend the summit and share their insights at a session on ‘Sustainable Mobility: Shaping the Future’.

J Jeyaranjan, vice-chairperson of the State Planning Commission, said Tamil Nadu’s energy and transport departments should work towards EV transition. “Tangedco should expedite the development of robust charging infrastructure. This involves establishing a comprehensive network of charging stations across Tamil Nadu to alleviate range anxiety and promote EV adoption,” he said, referring to the Tamil Nadu Generation and Distribution Corporation.

"Around 40 per cent of the EV four-wheelers and close to 70 per cent of the EV two-wheelers sold in the country are made in Tamil Nadu," said V Arun Roy, secretary in the Department of Industries, Investment Promotion, and Commerce.

V Vishnu, Guidance Tamil Nadu’s managing director and chief executive officer, called the state India’s EV capital, saying that more than 40 sector companies have their presence here.