The Electric Path. How Tamil Nadu powered up the EV-making ecosystem

The Hosur, Dharmapuri and Krishnagiri belt in north-western TN has emerged as a hub for EVs. How did the State crack the code?

Scooting out of the assembly line: Ather Energy factory, Hosur

Electric vehicles have been gaining traction around the world, and India is no exception. The northwestern districts of Tamil Nadu have seen an electric buzz, with EV companies such as Ola Electric, Simple Energy and Ather Energy setting up electric vehicle manufacturing plants in the Hosur, Dharmapuri and Krishnagiri (HDK) belt near the Karnataka border from Bengaluru. A combination of factors has contributed to the success of the HDK belt. Investors, a competent ancillary supplier network and its proximity to Bengaluru (150 km) have given the region the impetus to become an industrial belt. The fast adoption of EVs, especially in the twowheeler segment, has further boosted the regions growth prospects.

The government incentives, growing awareness and spiralling petrol prices have also been playing a role in the rise of EV sales in the region. Sanjay Swamy, Managing Partner, Prime Venture Partners, says,Amongst destinations near Bengaluru, the Hosur area has historically been very strong in the twowheeler and automotive and electronics sectors, so its natural that this would be the first choice since consistent access to power, land and trained labour would be logical criteria, in addition to proximity. Ather Energy began manufacturing from its facility located at Whitefield, Bengaluru in 2018.

At that time, proximity to its product and engineering teams was the key factor for the company. But, as the company entered a high growth phase, one of the key factors driving choice of location for Athers second manufacturing facility was proximity to suppliers. The company set up its plant in Hosur and recently commissioned its second facility to increase its capacity from 120,000 units to 400,000 units.

Bengalurus Electronic City is also a key region in the city for investors to consider real estate. Shanders, a real estate company, has identified Electronic City as a key region for investors looking to buy a plot in Bengaluru. The region boasts of an advanced infrastructure, manufacturingcentred policies and locational advantages that facilitate its manufacturing ecosystem and easy exports.

In addition, the city offers significant incentives to EV makers, such as full reimbursement of GST paid on the sale of vehicles, 100 per cent exemption on electricity tax and a subsidy on the cost of land. In summary, Tamil Nadus EV policy has powered up the EV manufacturing ecosystem. With the right incentives, Electronic City in Bengaluru is a great region for investors to buy a plot in the city. Companies like Shanders can help investors find their ideal plot in the area, offering lucrative incentives to those looking to invest in real estate in the area.


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