India registered a total of 10,44,600 electric vehicles in its Regional Transport Offices (RTOs) from January to September 20, the Ministry of Road Transport and Highways’ Vahan Dashboard revealed. Of that total, Tamil Nadu accounted for a whopping 40% with its 4,14,802-unit registrations.
The result is unsurprising, given that the state has been the country’s leading electric car production hub. According to Outlook, more than four lakh in every ten lakh EV sales in the country were built in Tamil Nadu.
A total of 10 automakers are operating in the state to produce various types of EVs, including two-wheelers, four-wheelers, and cars.
“It is a significant record and speaks volumes about the diverse, vibrant multi- sector presence and the impetus for growth accorded by the government.”
Government official via (Hindustan Times)
Tamil Nadu Electric Vehicles Policy 2023
Tamil Nadu apparently aims to advance as a global center for electric vehicles. Remarkably, the state successfully got in the top 10 ranking for automotive hubs across the world.
“We are among the top 10 global automobile hubs and now Tamil Nadu has now set its sights on becoming the world’s EV capital. With deep industry insights, the government has been working towards giving a big push to the EV ecosystem with manufacturing of batteries and charging infrastructure.”
Government official via (Hindustan Times)
These significant advancements in Tamil Nadu’s electric vehicle industry are largely due to the government’s push to establish a strong value chain, including battery production and charging infrastructure deployment.
Chief Minister M K Stalin proudly introduced the new “Tamil Nadu Electric Vehicles Policy 2023” on February 14 to accelerate the EV uptake in the state. It also aims to establish the state as a key hub for EV production in Southeast Asia.
This policy will offer multiple incentives for EV-related projects, such as the following:
- Capital support
- SGST reimbursement
- Turnover-based subsidies
- Advanced chemistry cell subsidies
The updated EV policy also proposes to reduce current energy prices by 75% in the first two years, followed by a 50% markdown for the subsequent two years.
Tamil Nadu EV targets
Tamil Nadu aims to see a boost in EV production investments by more than Rs 50,000 crore in 2025.
It further aims to account for 30% of the country’s EV volume in terms of production this decade. In the same year, it plans to penetrate the global market through exports.
Growth drivers
According to the report, the local operations of established automakers like Mahindra, Hyundai, Nissan, TVS, and Daimler significantly boost Tamil Nadu’s electric vehicle industry.
They aid the state to continuously advance as an auto production hub. Its enormous production ecosystem has also enticed new investments from various companies, including Ather Electric, Ola Electric, Ampere, and others.
According to Drive Spark, Ola Electric sold 1.75 lakh EVs from Jan to Sep 20. TVS Motor followed with 1.12 lakh sales. Meanwhile, Ather Energy also had a strong performance, with sales of 77,764 EVs in the same period.
The state also named Chennai, Coimbatore, Salem, Trichy, Madurai, and Tirunelveli top cities in EV production.
See Also:
- India’s growing electric vehicle charging network: Trends and Insights
- Tesla reportedly proposes a new battery storage plant in India
- Mercedes-Benz to open its charging network to other automakers in India
- India to advance as a key market for EVs, QIA forecasts
- Two-wheeler and Three-wheeler EVs boost clean mobility shift in India
Tamil Nadu’s dominance in the local electric vehicle industry demonstrates its government’s efforts to support the shift to e-mobility. The new EV policy will undoubtedly boost the state’s EV production and sales in the coming quarters.
