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The South-based Murugappa Group is planning to invest ₹800 crore-₹ 1,000 crore in its electric vehicle (EV) business through its EV arm TI Clean Mobility, a top executive said.
This includes the cost of two acquisitions [a company into electric tractors and another into electric heavy commercial vehicle (HCV)], investments made over three years to foray into EV business, ₹200 crore committed investment for the electric 3-wheeler business and future investment in R&D, cost of land and to put up production facilities as well in product and business development.
“Our cumulative investment in the electric-vehicle business would be to the tune of ₹800 crore to ₹1,000 crore,” said Kalyan Kumar Paul, MD, TI Clean Mobility Private Ltd., during an interaction. “We want to be a significant player in all our three verticals.”
He said the Group was investing in this business and all future investments would also come from the Group as well.
“All the investments will come from the group. We have very good cash flowing in. We should be able to fund this,” he said.
“We expect to break even by third year from the start of production,” he added.
To have complete focus, IT Clean Mobility has been made a subsidiary of Murugappa Group unit Tube Investments of India (TII).
The company has already introduced its first EV, an electric 3-wheeler for passenger application. The 3-wheeler, to be sold under the brand Montra Electric, is scheduled for delivery in December this year.
“We aspire to be among the top three players [in 3-wheelers] within the first year of product rollout,” Mr. Paul said.
Beginning with the South, the company would have a total dealer base of 100 for the 3-wheeler business. Later, it has plans to enter other markets.
Mr. Paul said the introduction of e-tractor and e-HCV would follow the e 3-wheeler.
He said the company would eye 10% market share in each of its three verticals.
“We are exploring more growth opportunities and we will allocate appropriate funds, at the right time,” he added.
The company is currently building a team of 400 to 500 persons to support its growth plans.
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