Telangana to see Rs 6,000-crore investments in EV manufacturing
Hyderabad: Telangana will see investments of Rs 6,000 crore in electric vehicle (EV) manufacturing over the next five years. The investments are based on EV companies’ outlay in manufacturing capacities, mostly in EV components and assembly-line production, followed by investments in battery manufacturing. Emerging clusters in the State such as Chandanvelly-Sitarampur and Divitipalli are drawing […]
Hyderabad: Telangana will see investments of Rs 6,000 crore in electric vehicle (EV) manufacturing over the next five years. The investments are based on EV companies’ outlay in manufacturing capacities, mostly in EV components and assembly-line production, followed by investments in battery manufacturing.
Emerging clusters in the State such as Chandanvelly-Sitarampur and Divitipalli are drawing significant investments and attention led by the State government incentives, attracting not only startups and new entrants into the EV sector but also established players.
“These clusters are suitable for the industry to pick for both electric vehicle and ancillary component manufacturing, catering to the broader EV landscape,” Ramesh Nair, CEO, India & MD, Market Development, Asia, Colliers told Telangana Today.
To enable growth in the sector, Telangana has been focusing on manufacturer-based incentives such as capital subsidy and development of industrial clusters while also providing 100 per cent road tax exemptions as part of the State’s demand side incentives.
Shyam Arumugam, MD, Industrial and Logistics Services, Colliers India, said, “Telangana has been a frontrunner in EV promotion. The State already has seen a fair amount of success in attracting companies and thousands of crores of investments. The State is a strong contender as several companies looking to invest in India are evaluating Telangana as a potential location. Companies such as Triton EV have found the State promising, announcing plans to invest Rs 2,100 crore.”
Other States that are also eyeing a share in the country’s burgeoning EV manufacturing opportunity are Karnataka, Tamil Nadu, Maharashtra, Gujarat, Rajasthan, UP and Haryana. Currently, 15 Indian States have either approved or notified EV policies, with six more States in the draft stage.
Nair added, of the $12.6 billion investments anticipated in the Indian EV segment in next five years, planned investments of OEMs account for 64 per cent whereas the remaining capital would go into Li Ion battery manufacturing. EV charging infrastructure market on the other hand is likely to grow at 40 per cent CAGR till 2025 as per Niti Aayog’s estimate.
As electric vehicles gain popularity in India, both the public and private sector companies are betting big on the industry’s promising growth. India has witnessed a record-high increase in EV sales as the numbers tripled to 1.18 lakh units in H1 FY22 (April-September 2021) year-on-year.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .
