“We’re Not Just Witnessing the EV Transition — We’re Building It Here”: Arun Murugappan on Tamil Nadu’s role in India’s clean mobility future.
29 Mar 2025 | 11438 Views | By Kiran Murali & Ketan Thakkar
“We’re not just witnessing the EV transition — we’re building it here in Tamil Nadu,” said Arun Murugappan, Chairman of the Murugappa Group, speaking at the Autocar Professional Future Powertrain Conclave, held in partnership with Guidance Tamil Nadu.
His remark captures the sentiment driving one of India’s most ambitious ...
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“We’re not just witnessing the EV transition — we’re building it here in Tamil Nadu,” said Arun Murugappan, Chairman of the Murugappa Group, speaking at the Autocar Professional Future Powertrain Conclave, held in partnership with Guidance Tamil Nadu.
His remark captures the sentiment driving one of India’s most ambitious clean mobility transformations — led not by the Centre but by a state that is quietly outpacing the rest.
Murugappan credited Tamil Nadu’s leadership in EV manufacturing to a combination of early policy vision, manufacturing infrastructure, and a clear intent to become a global hub for electric vehicle production.
From Auto Base to EV Powerhouse
Tamil Nadu already had a strong foundation for the automotive industry. Today, they are a powerhouse for the EV,” Murugappan said, highlighting the state’s legacy and its shift into the electrification era.
He pointed to Tamil Nadu’s first EV policy in 2016, a pioneering move that preceded EVs becoming a national priority. The 2023 policy update, he said, was even more forward-looking — with its vision to make the state a preferred destination for EV manufacturing and services.
“They want to transform the state into a preferred destination for EV,” he said. They’ve set up EV parks around Tamil Nadu — there are actually three of them. They plan to redevelop one city by implementing electric vehicle (EV) solutions.
The policy, Murugappan added, addresses both OEMs and service providers, intending to attract over Rs 50,000 crore in investment and build a sector that could be valued at $40 billion by 2030.
Murugappa Group’s EV Platforms Rooted in Chennai
The 125-year-old Murugappa Group generates over Rs 77,000 crore in annual revenue with its diverse interests in agriculture, automotive, engineering and financial services.
Chennai-based Murugappa Group has a step-down subsidiary TI Clean Mobility and Tivolt Electric Vehicles, which manufacture electric vehicles. It develops electric vehicles under the Montra Electric brand.
The group has developed four EV platforms - for electric tractors, three-wheelers (both cargo and auto), electric small commercial vehicles (ESCVs), and electric heavy commercial vehicles (E-HCVs).
In the financial year, the company had earmarked close to Rs 500 crore for a new facility and R&D. The group has set a target of $1 billion in revenue for the electric vehicle business by 2029, and capture a 15% share of the Indian EV market.
Earlier this month, Montra Electric inaugurated a dedicated manufacturing facility for electric small commercial vehicles (e-SCV) in Ponneri, Chennai.
“Out of the four factories, three are in Chennai,” Murugappan said, attributing that to proactive policies and Tamil Nadu’s focus on enabling industrial growth.
Why the Market Needs Continued Support
Speaking on the future of powertrains, Murugappan was candid about the economics of EV adoption — especially in India’s price-sensitive commercial segments.
“India is a very price-sensitive country. Why should people switch to EVs from their current vehicles? That’s where the government comes in.”
While electric three-wheelers are surging — now accounting for almost a third of the segment — Murugappan expects 70% adoption by 2030. For other commercial vehicles, though, he predicts EV adoption may not exceed 20% without stronger intervention.
He made a strong case for targeted and sustained subsidies, especially for segments such as small and heavy commercial vehicles (CVs) that currently lie outside the scope of major electric vehicle (EV) incentive schemes.
“The initial cost is high. After the first five years, you realize the benefits of owning an EV — the running costs are much lower. Therefore, you must provide a subsidy initially. And then maybe you can withdraw it after some time,” he explained.
Charging Infrastructure: The Missing Link
Murugappan also pointed to charging infrastructure as a critical gap in India’s EV roadmap.
India, in terms of charging infrastructure, is not yet there. There’s a long way to go,” he said. “Maybe develop charging infrastructure in IPAs, give land — things like that.”
He emphasized that charging and cost savings must go hand in hand to drive mass adoption in commercial sectors truly.