After Ola Electric, TVS Motor to invest ₹1,200 crore in Tamil Nadu to make EVs
TVS Motor has announced big ticket investment in electric vehicle manufacturing today. The Indian two-wheeler manufacturer has signed an MoU with the Tamil Nadu government to set up its electric vehicle manufacturing facility. The move comes closer to Ola Electric opening its Futurefactory, the largest electric two-wheeler manufacturing facility in the world.
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TVS Motor will invest ₹1,200 crore in the state in the next four years to build electric vehicles and work on future technologies. A memorandum of understanding with signed in the presence of Chief Minister M K Stalin during the Tamil Nadu Investment Conclave in Coimbatore in this connection. Accordingly, TVS Motor Company Chairman Venu Srinivasan exchanged documents with Guidance Tamil Nadu MD and CEO Pooja Kulkarni IAS.
"Under the MoU, TVS Motor Company will invest RS 1,200 crore in Future Technologies and Electric Vehicles in the next four years. The investment would mainly for the design, development and manufacturing of new products and capacity expansion in the electric vehicle spaces," TVS Motor said in a statement.
Currently, TVS Motor has only one electric vehicle on offer in the EV category. TVS iQube electric scooter, which was launched in January last year, is priced at a little more than ₹1 lakh and is available in 33 cities across the country. It is a direct rival to the likes of the Ather 450X and the Bajaj Chetak Electric. In September this year, TVS sold 766 units of iQube electric scooters, much higher than its rival Bajaj Chetak Electric.
TVS Motor said the signing of the MoU was in line with its firm belief in the potential of the state in terms of human resources, infrastructure and overall business environment. The investment would also have a significant beneficial effect on small and medium industries directly or indirectly associated with TVS Motor in Tamil Nadu.