One of the frontrunners in the two and three-wheeler vehicle segment, TVS Motor Company on Tuesday said it will invest Rs 1,200 crore in Tamil Nadu in the next four years on future technologies and electric vehicles, forging an agreement with the state government in this regard.
“The investment will be mainly for the design, development, manufacturing of new products and capacity expansion in the EV space,” The Chennai-based firm said in a statement.
The MOU was signed in the presence of the Chief Minister of Tamil Nadu, M.K. Stalin and Venu Srinivasan, Chairman TVS Motor Company at the Tamil Nadu Investment Conclave 2021 in Coimbatore. Under the MOU, TVS Motor Company will invest ₹1,200 crores in Future Technologies and Electric Vehicles (EV) in the next four years.
Stating that it is transforming itself into a digital age company with a connected, sustainable and electric brand, the firm said it is “committed to leading the technology development in EV and green fuel and leading the way to the electrification of the two-wheeler segment in the country”.
“The signing of this MOU is in line with TVS Motor Company’s firm belief in the potential of the State in terms of human resources, infrastructure and overall business environment. It will also have a significant beneficial effect on small and medium industries directly or indirectly associated with TVS Motor Company in Tamil Nadu,” the company noted.
“This investment reflects TVS Motor Company’s continued commitment towards the state’s overall economic growth as a responsible corporate citizen,” the statement further added.
A few months earlier, TVS had announced plans to invest Rs 1,000 crore in the EV business and is setting up a new subsidiary for this.
Presently, iQube is the only all-electric product in the market from TVS.
TVS’s first all-electric scooter iQube was launched in January 2020. The battery-powered scooter with a range of 75 km is available in New Delhi, Chennai, Pune, Coimbatore, Kochi and Bengaluru, as part of the 33 cities roll out. However, like the rest of the industry, the company too is struggling to ramp up production because of a shortage of chips and other parts.