TI Clean Mobility, the electric vehicle division of the Murugappa Group, has earmarked a substantial ₹320 crore for the establishment of a new manufacturing facility in Chennai, aimed at producing electric small commercial vehicles.
This investment forms a significant part of the company’s broader capital expenditure plan of ₹471 crore. As a subsidiary of Tube Investments of India Ltd, TI Clean Mobility is strategically enhancing its production capabilities across four distinct vehicle segments: electric three-wheelers, electric small commercial vehicles, electric heavy commercial vehicles, and electric tractors. The new Chennai plant is set to play a pivotal role in this expansion.
The projected annual production capacities for the company are ambitious, with approximately 75,000 units for electric three-wheelers, 50,000 units for electric small commercial vehicles, 25,000 units for electric tractors, and 4,500 units for electric heavy commercial vehicles. These targets were outlined by the company’s management during the Q4FY24 earnings call. TI Clean Mobility plans to launch its electric small commercial vehicle under the Tivolt Electric Vehicles subsidiary in the second quarter of this fiscal year. This vehicle will be marketed under the Montra brand, which is already being used for the company’s electric three-wheelers.
Regarding the electric three-wheeler segment, the management noted that sales were impacted by the transition from the FAME scheme to the new EMPS scheme. The industry saw a decline in sales to about 42,000 units in April 2024, down from 61,000 units in March 2024. The company’s Montra electric autorickshaw, currently sold in the southern market, is slated to enter the northern market by the end of the financial year. TI Clean Mobility has established 63 dealerships and aims to double this number by the fiscal year-end. Additionally, the company is developing a cargo version of its three-wheelers, with homologation processes currently underway.
In the electric truck segment, TI Clean Mobility has an order backlog of 35-40 units, expected to be fulfilled by May or June. Currently, 70 trucks are operational, and the company is engaging with several large customers for additional orders. Moreover, the company plans to launch its electric tractors in the third quarter of this fiscal year. To support these ambitious expansion and growth initiatives, TI Clean Mobility has been actively raising funds, having already secured approximately ₹2,530 crore out of a targeted ₹3,000 crore. This substantial investment and strategic expansion underscore TI Clean Mobility’s commitment to leading the electric vehicle market in India, leveraging its manufacturing prowess and broadening its market reach across various vehicle segments.
