Balancing legacy and future technologies, Tamil Nadu positions itself as a hub for both EV disruption and ICE resilience.
27 Mar 2025 | 3446 Views | By Ketan Thakkar
Tamil Nadu is adopting a pragmatic, dual-track approach to mobility, supporting the growth of electric vehicles while maintaining its legacy as India’s hub for internal combustion engine (ICE) manufacturing.
Speaking at Autocar Professional’s Future Powertrain Conclave held on Wednesday in Chennai in partnership with Guidance Tamil Nadu, ...
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Tamil Nadu is adopting a pragmatic, dual-track approach to mobility, supporting the growth of electric vehicles while maintaining its legacy as India’s hub for internal combustion engine (ICE) manufacturing.
Speaking at Autocar Professional’s Future Powertrain Conclave held on Wednesday in Chennai in partnership with Guidance Tamil Nadu, TRB Rajaa, Minister for Industries, made it clear that the state is not choosing between the past and the future, but building on both.
“Tamil Nadu is rooted in metal and rising in code,” said Rajaa, summarising the state’s unique position as both a traditional automotive giant and a fast-emerging electric vehicle (EV) powerhouse. “We’ll remain a trusted partner for ICE manufacturing while also investing in the EV transition with eyes wide open to the opportunities and challenges ahead.”
Tamil Nadu accounts for over 40% of India’s auto component production and is home to global OEMs and a thriving supplier ecosystem. At the same time, it now manufactures 70% of all EV two-wheelers sold in the country, thanks to early policy bets and streamlined approvals that have attracted firms like Ola Electric, Ather Energy, and VinFast.
Rajaa acknowledged the uncertainty around EV adoption at the national level, citing concerns around battery disposal, raw material supply, and charging infrastructure. “We still haven’t figured out the full roadmap of the EV revolution,” he said. “That’s why Tamil Nadu is keeping one eye on ICE and one eye on EVs.”
He added that the state’s focus remains on job creation, skill development, and building a sustainable ecosystem that supports both traditional and next-generation mobility. “India cannot be the last man standing in ICE. But we also can’t afford to rush EV adoption without solving real-world challenges,” he said.
Industry leaders at the conclave praised Tamil Nadu’s policy continuity, fast decision-making, and unique ability to blend hardware engineering with emerging software and R&D capabilities.
Rajaa also reiterated that the state’s approach to EVs is customer-led and market-aligned. “When the customer decides to convert, there’s no stopping them,” he said. And when that moment arrives, Tamil Nadu will be ready—not just with factories but with the entire ecosystem.
Wooing investment in Tamil Nadu
During the discussion, TRB Rajaa also made a renewed call for deeper investments from homegrown automotive giants, such as Mahindra & Mahindra and Tata Motors.
Mahindra & Mahindra has a significant R&D base in the state, and Tata Motors recently broke ground to set up a factory in the state.
“We celebrate Mahindra not just because of its legacy but also because 70% of the talent in its Mahindra Research Valley comes from Tamil Nadu,” Rajaa noted. “They may not be manufacturing passenger EVs here yet—but we’re hopeful that day will come soon.”
The Minister similarly alluded to Tata Motors, which recently announced a new plant for passenger vehicles, but has yet to produce a commercial vehicle in the state.
“The EV ecosystem we’ve built—from suppliers to software talent to ports—is ready for scale,” Rajaa said. “We believe Tamil Nadu is the natural home for the next big wave of Indian EV innovation.”
He emphasized that the government is willing to offer tailored support and expedited clearances for both companies, backed by a strong policy framework and long-standing industrial continuity. “We’re not just looking at investments. We’re looking at creating jobs, building IP, and shaping the future of Indian mobility together,” Rajaa added.
The message was clear: Tamil Nadu is rolling out the red carpet—not just for global EV players but also for Indian champions who are shaping the future of sustainable mobility.