Tamil Nadu’s EV revolution has made it the home of several traditional car manufacturers, thanks to the green revolution and component manufacturers. TN is also a hotbed of electronics innovation and boasts some of the biggest players in the ecosystem. The vision of a greener future and electric mobility has led the State to host the world's largest electric two-wheeler factory by Ola, which is in the process of setting up a gigafactory to support electric two-wheeler production in the future. At a time when Tesla's Indian manufacturing foray is being watched closely, India's ambition to place itself on the global electric car manufacturing map is palpable. While every State wants a piece of the EV pie, there is one that has been eyeing space for quite some time - Tamil Nadu. Here is the latest look into the latest MoU signed by the State with the manufacturers.
VinFast
VinFast, Vietnam’s leading electric vehicle (EV) manufacturer and the Tamil Nadu State Government have signed a Memorandum of Understanding (MoU) through which both players will invest around $2 billion, with an intended commitment of $500 million for the first phase of the project, spanning five years. Situated in Thoothukudi, the VinFast Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units.
The plan to expand into India aims to seize growth opportunities in the world's most populous nation and rapidly expand the electric vehicle market. This initiative forms a crucial part of VinFast's strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.
Hyundai Invests Rs. 6180 Crore in Tamil Nadu
Hyundai Motor India Ltd recently announced that it will invest Rs 6,180 crore in various initiatives, including setting up a hydrogen resource center in Tamil Nadu. The automaker's new investment is in addition to the Rs 20,000 crore it plans to deploy over ten years (2023-2032) to boost its efforts in electric vehicle manufacturing, charging infrastructure, and skill development. The company signed an MoU with the state government for the new investment during the Tamil Nadu Global Investors Meet 2024.
This substantial investment of Rs 6,180 crore is a testament to our enduring commitment to fortifying the State's pursuit to boost the socio-economic development in the State and make the country self-reliant," Hyundai Motor India MD & CEO Unsoo Kim says.
This collaboration with the state government goes beyond mere investment; it is a catalyst for cultivating a robust hydrogen technology ecosystem that reflects the company's commitment to sustainability and a green future. The initiative is also expected to create employment and boost skills development in the region. Hyundai Motor India has its manufacturing base in Tamil Nadu. It churns out more than 8 million units annually from its manufacturing facility near Chennai.
Reliance Committed to New Investments in Tamil Nadu
Reliance Industries' Mukesh Ambani says Tamil Nadu has emerged as one of the most business-friendly states in the country and believes it will indeed become a trillion-dollar economy in line with the state government's target of achieving the milestone by 2030. The chairman of India's largest private sector company sector said that Reliance has been a partner in the growth of Tamil Nadu over the years and is "confident" that the state government will support its upcoming initiatives with a viable policy.
"Ambani says, “Reliance is committed to making new investments in Tamil Nadu in renewable energy and green hydrogen. We shall work closely with the state government to promote sustainable development, which is necessary to save Mother Earth from the climate crisis.”
Jio has completed the fastest 5G rollout anywhere in the world, which in turn would allow Tamil Nadu to reap the benefits of artificial intelligence and other fourth industrial revolution breakthrough technologies that would further accelerate the State's economy.
Adani Group
The Adani Group has signed a Memorandum of Understanding (MoU) with Tamil Nadu for investments in excess of Rs 42,700 crore at the Global Investors Meet 2024. The largest portion, Rs 24,500 crore, will be put in by Adani Green Energy Ltd in three pumped storage (PSP) projects over the next 5-7 years. Tamil Nadu Chief Minister MK Stalin, State Industries Minister TRB Rajaa, and Karan Adani, Managing Director of Adani Ports and Special Economic Zones, were present at the signing of the MoU.
Adani Connex is set to invest Rs 13,200 crore in a hyperscale data center over the next seven years, while Ambuja Cements will contribute Rs 3,500 crore to build three cement grinding units in the next five years. Adani Total Gas Ltd plans to invest Rs 1,568 crore over eight years. Karan Adani praised Tamil Nadu's stability, established industrial ecosystem, advanced infrastructure, connectivity, and business-friendly policies. Referring to Chief Minister MK Stalin, Adani acknowledged his efforts to make Tamil Nadu a socio-economic powerhouse.
"Today's Tamil Nadu is a standout example of stability, a well-established industrial ecosystem, advanced infrastructure, total connectivity, and safe and secure neighborhoods, business-friendly policies with an able and efficient team of officers, and a diverse and highly-skilled workforce with more women in the ranks than anywhere else in the country!" Karan Adani says.
Royal Enfield
Motorcycle maker Royal Enfield, a unit of Eicher Motors Ltd, has earmarked an investment of Rs. 3,000 crore over eight years in Tamil Nadu for new product development, the company said on Monday. The investment is expected to generate around 2,000 direct and indirect jobs in the region. According to the MoU signed with the Tamil Nadu government during the Global Investors Meet here, the investments will be used to set up Greenfield and brownfield projects in the region.
This investment will mainly be used for new product development, electric vehicle (EV) product development, and capacity building, as well as additionally for any ICE (internal combustion engine) capacity increase whenever needed, the company said in a release. Royal Enfield CEO B Govindarajan exchanged documents with Tamil Nadu Industries Department Secretary V Arun Roy during GIM 2024 in the presence of Chief Minister MK Stalin.
Govindarajan says, “Tamil Nadu has been our home, the anchor for our engineering, technical, and manufacturing base for several decades. This strategic investment in Tamil Nadu marks a significant milestone for us at Royal Enfield. Key provisions of the MoU include infrastructure support and regulatory facilitation. The government would also prioritize the provision of uninterrupted power supply and other necessary infrastructure support. We express our sincere gratitude to the Government of Tamil Nadu for their unwavering support and are eager to work with the Government to create a positive impact on the community and contribute to the overall economic prosperity of the State.”