TII Invests in Affordable and Accessible Electric Vehicles

The electric vehicle (EV) division of Tube Investments of India (TII), a part of the Murugappa Group's engineering firm, has allocated approximately Rs 300 crore for capital expenditure in the current fiscal year. Looking ahead, it plans to invest around Rs 460 crore in the next fiscal year across all businesses under Tube Investments of India, Murugappa Private Limited (TICMPL).

TICMPL is strategically venturing into four key product segments: e-three-wheelers, e-tractors, electric medium and commercial vehicles (via its subsidiary IPLTech Electric), and electric small trucks (via its subsidiary TIVolt Electric Vehicles). Its foray into the electric three-wheeler market began with the launch of the Montra electric autorickshaw in Tamil Nadu and Andhra Pradesh, with plans to expand into the northern and eastern regions through an expanded dealer network.

To bolster its EV supply chain, the company is intensifying its research and development efforts. It will establish two specialized teams, one dedicated to product development and vehicle integration, and the other focused on advancing next-generation EV component architecture. While some EV components like motors, motor control units, and battery management systems are currently procured from third-party vendors, the company aims to eventually develop motors and motor control units internally.

TII has already injected Rs 250 crore as equity into TICMPL and Rs 500 crore as compulsorily convertible preference shares (CCPS). Additionally, TICMPL has secured approximately Rs 1,200 crore through private equity investors. In total, the EV division has garnered funds amounting to Rs 1,950 crore thus far.

News by Rahul Yelligetti