Electric vehicle startup DAO EvTech will invest Rs 100 crore in Tamil Nadu to establish 20 dealerships in Chennai. The company expects the project to generate over 2,000 new job opportunities by 2025.
“With this USD 100 million investment, we have specifically set aside Rs 100 crore for Tamil Nadu. With our expansion strategy, we expect to generate 2,000 new positions over the next two years.”
Dr. Michael Liu, DAO EvTech CEO, and Chairman
Remarkably, the two-wheeler EV maker has also announced plans to allocate Rs 100 crore in India on top of the Tamil Nadu investment as part of its expansion effort.
In retrospect, DAO EvTech has already started two-wheeler EV production at its plant in Chakan, Pune. It has also already secured funding from US-headquartered DAO Evtech LLC and its advocate Michael Liu.
Purpose of the investment
DAO EvTech already has an existing dealership network in Madurai, Pollachi, Coimbatore, and Thanjavur.
Now, the automaker aims to launch another 20 dealerships in Chennai as part of its local expansion initiatives. In essence, DAO EvTech plans to prioritize Tier II and III markets for its wide range of products.
The company will launch its ZOR 405 model to join the flagship DAO 703. It boasts that the ZOR 405 has a load capacity of 220 kg. Furthermore, it apparently features Dual suspension, a strong foot stand, and a low center of gravity.
Why Tamil Nadu?
DAO EvTech CEO and Chairman Dr. Michael Liu claim that the Indian state is a significant market for two-wheel EVs during the company’s launch event.
“Tamil Nadu market is crucial to any EV two-wheeler maker. Chennai has the highest two-wheeler penetration rate at 73 percent, which is double that of major cities like Mumbai and Bengaluru.”
Dr. Michael Liu, DAO EvTech CEO, and Chairman
The executive further noted the EV technology’s stronger appeal to young people than older people who struggle to adapt to such innovations instantly. Considering that Tamil Nadu has a relatively high population rate, it is most likely that the state will be more welcoming of EVs.
“EV is a growing business that is more focused on young individuals who embrace technology quickly. The state has a large population making Tamil Nadu an EV friendly state. We will continue investing USD 100 million in India and in 2023, we will set aside USD 20 million for the development of novel products.”
Dr. Michael Liu, DAO EvTech CEO, and Chairman
DAO EvTech’s investment in India will indeed boost the country’s electric vehicle target of a 30% penetration rate by 2030. With the right governmental support, India has a strong potential to be an EV-friendly country.
