Simple inks deal to set up EV plant in TN at a cost of ₹2,500 cr
Simple Energy, a manufacturer of electric scooters, has signed a deal with the Tamil Nadu government to invest as much as Rs2,500 crore to build electric two-wheelers.
The Bengaluru-based company is building its first plant near Shoolagiri (Hosur), with the capacity to produce up to 1 million electric two-wheelers per year. The factory is slated to be operational by early 2022. This would put the company’s flagship scooter ‘Simple One’ into production and begin deliveries, the company said in a statement on Wednesday.
In the second phase, the company plans make an initial investment of ₹1,000 crore to build its second plant on 600 acres of land in Dharmapuri, Tamil Nadu in 2023, with the capacity to make 12.5 million two-wheelers annually. The company intends to open the second factory by 2023.
“Tamil Nadu gave us the confidence to create the EV ecosystem, which can be sustainable in achieving our long-term goals,” said Suhas Rajkumar, founder and CEO of Simple Energy. “With the MoU, we commit to leading the Indian E2W market in India by setting up a resourceful ecosystem that will help the country’s vision to lower carbon footprints at a faster pace. Simple Energy will thus redefine electric mobility in India.”
Pooja Kulkarni, managing director and chief executive of Guidance, Tamil Nadu, hoped that the partnership with the Tamil Nadu government would help the company “become a global player, benefiting the local ecosystem”.
Simple Energy plans to export EVs and eventually create more than 12,000 direct and indirect jobs, the company said in its statement.
Never miss a story! Stay connected and informed with Mint.
our App Now!!