The electric vehicle (EV) industry in Tamil Nadu has the potential to reach $40 billion by 2030, as per government estimates. The state needs to tap into the opportunities from the entire EV ecosystem, including components, raw materials, machinery, tooling, testing, and research and development.
The Opportunity in the EV Parts Industry
The EV parts industry has a $20 billion opportunity in EV batteries, electronics, motors, telematics, and software. It also includes essential raw materials like cell chemicals, electrical steel and magnets, semiconductors, PCB, aluminum, and copper.Growth in EV Research and Development
Estimates suggest India’s EV R&D footprint may advance from $5 billion in 2023 to $16 billion in 2030, with localization increasing from 20% to 60% during that time. At this point, the Tamil Nadu EV industry aims to capture 30%, apparently projected to be worth $3 billion annually by 2030.Focus on R&D and Existing Ecosystem
Tamil Nadu EV industry plans to focus on R&D and building on the existing ecosystem created by companies like Ford, Nissan, and Mahindra & Mahindra. Tamil Nadu is fast emerging as an R&D hub in the EV industry.Investments and Policies in Tamil Nadu
Investments in Tamil Nadu EV R&D and innovation are already yielding results, such as Mahindra Research Valley’s EV R&D facility in Mahindra World City, Chengalpattu. This facility boasts an EV battery test lab and builds an EV crash test unit for validating high-performance EV battery solutions.Overall, Tamil Nadu has a strong foundation in automotive technology and focuses on R&D, innovation, and collaboration, making it an attractive location for innovation-driven investment.The Potential of Tamil Nadu’s EV Industry
Tamil Nadu has implemented various policies, such as an EV policy and an R&D policy, along with separate incentive structures. It encourages new investments in vehicle manufacturing and back-end software, hardware, and R&D. There is also a downstream opportunity in scrap recycling of raw materials like aluminum, lithium, nickel, and copper for the EV industry in Tamil Nadu.LEADERBOARD
