Murugappa Group To Invest Rs 320 Cr For Electric Small-Truck Manufacturing Plant In Chennai

(MENAFN- KNN India) New Delhi, May 16 (KNN) TI Clean Mobility, the electric vehicle subsidiary of Murugappa Group's Tube Investments of India Ltd, has outlined an extensive capital expenditure plan totalling Rs 471 crore to bolster its production capabilities across multiple electric vehicle segments.

A significant portion of Rs 320 crore will be allocated to establishing a manufacturing facility in Chennai dedicated to producing electric small commercial vehicles.

The strategic expansion aims to augment the company's annual production capacities, projecting approximately 75,000 units for electric three-wheelers, 50,000 units for electric small commercial vehicles, 25,000 units for electric tractors, and 4,500 units for electric heavy commercial vehicles.

TI Clean Mobility's subsidiary, Tivolt Electric Vehicles, is poised to introduce its electric small commercial vehicle in the second quarter of the current fiscal year. This vehicle will be marketed under the Montra brand, which currently serves as the company's label for its electric three-wheeler offerings.

Addressing the electric three-wheeler business, the company's management acknowledged that sales were impacted by the transition from the FAME scheme to the new EMPS scheme. The electric three-wheeler industry witnessed a decline in sales, dropping from 61,000 units in March 2024 to approximately 42,000 units in April 2024.

TI Clean Mobility's monthly sales dipped from over 500 units during the fourth quarter of the previous fiscal year to around 200 units in April. To mitigate the effects of this transition, the company implemented a price hike for its electric three-wheelers and absorbed some costs.

The management revealed that the company's electric autorickshaw, Montra, currently marketed in the southern region, is slated for expansion into the northern market by the end of the current fiscal year.

TI Clean Mobility has established 63 dealerships and aims to double this number by the fiscal year-end. Additionally, the company is working on introducing a cargo version of its three-wheelers, with homologation processes currently underway.

In the electric truck segment, TI Clean Mobility has an order backlog of 35-40 units, expected to be fulfilled by May or June. Currently, 70 electric trucks are operational, and the company is engaging with several large customers to secure additional orders.

Furthermore, plans are in place to launch electric tractors in the third quarter of the current fiscal year. To support its expansion and growth initiatives, TI Clean Mobility has secured approximately Rs 2,530 crore out of its targeted Rs 3,000 crore funding.

(KNN Bureau)


KNN India

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