Tamil Nadu eyes $6 bn investment in EVs, 150,000 jobs in five years

This comes after the state attracted nearly Rs 24,000 crore in investments in this space, creating almost 48,000 jobs during the pandemic period

The government of Tamil Nadu said on Friday that it is targeting an investment of about $6 billion and creating 150,000 new employment opportunities in the electric vehicle sector over the next five years. This comes after the state attracted nearly Rs 24,000 crore in EV investments, leading to almost 48,000 jobs, during the pandemic period.

While several new-age EV firms such as Ather, Ola Electric, Ampere and Simple Energy have invested in the state, traditional global automotive giants such as Hyundai, Nissan, TVS Motors, Mahindra, and Daimler have lined up their EV plans in Tamil Nadu.

In May, Hyundai Motor India (HMIL) had announced plans to invest Rs 20,000 crore in the state over the next 10 years, starting from 2023, to expand its presence in EVs. SoftBank-backed Ola Electric Mobility had lined up expansion plans at Pochampalli unit in Krishnagiri district with an investment of around Rs 7,614 crore for a four-wheeler EV manufacturing plant and a 20 giga watt battery unit.

“Tamil Nadu is committed to securing $6 billion in investments and creating 150,000 new employment opportunities within the EV sector over the next five years,” said state industries minister T R B Rajaa. He was addressing a closed round table, including senior leaders from over 20 major global EV firms and component makers, hosted by Guidance Tamil Nadu and the World Economic Forum (WEF) on Friday.  

As part of this commitment, he mentioned that the Government had launched the revised "Tamil Nadu Electric Vehicles Policy 2023", which incentivizes and attracts investors to strengthen the State's flourishing EV ecosystem. Six cities -- including Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli -- have been earmarked for development as EV hubs to hasten Tamil Nadu's rise as a global EV manufacturing hub.

"With a focus on developing the EV ecosystem in the State, the Government of Tamil Nadu has already unveiled a new Electric Vehicles Policy 2023 with various incentives and offers. Hyundai is one of the largest manufacturers and will be a committed partner to realize Tamil Nadu's vision to become a preferred EV hub in the country. We believe that the upcoming action plans will drive quicker adoption of EVs while balancing measures on the supply and demand sides and charging infrastructure in the State,” said Gopalakrishnan CS, Chief Manufacturing Officer, Hyundai Motor India.

The sops under the Tamil Nadu Electric Vehicles Policy 2023 for manufacturers include 100 per cent reimbursement of state goods and services tax (SGST), investment or turnover based subsidy and advanced chemistry cell subsidy. 

The state will provide a 100 per cent exemption on electricity tax for five years on power purchased from the Tamil Nadu Generation and Distribution Corporation, exemption on stamp duty and also subsidy on cost of land among others.