Tamil Nadu Produces Over Half of India's Electric Two-Wheelers
CHENNAI — Tamil Nadu has established itself as the hub of India's electric vehicle manufacturing ecosystem, producing more than half of the country's electric two-wheelers and approximately 40 percent of its total electric vehicle output. The state's industrial strength is anchored by major research and development centers, including the Mahindra Research Valley near Chennai and the IIT Madras ecosystem.
The growth comes as the broader Indian market experiences an acceleration in electric vehicle adoption. In May, battery-powered vehicles crossed the 10 percent penetration mark for the first time, indicating that electric mobility is steadily moving into the mainstream.
Tamil Nadu's manufacturing landscape now features a diverse lineup of electric vehicle makers across multiple segments. In the two-wheeler sector, companies such as TVS Motor, Ola Electric, Ather Energy, Greaves, Raptee Energy, and Royal Enfield have set up production. Passenger vehicle manufacturing is led by Hyundai, BYD, and VinFast, while Switch Mobility and Montra Electric have established operations for electric buses, trucks, and last-mile mobility solutions.
While the state has successfully attracted significant investments from both domestic and global manufacturers, industry experts suggest the next phase of development will require a shift in focus.
Kaushal Kumar Jha, the CEO of NoonRay Energy and an Adjunct Professor of Engineering Design at IIT Madras, noted that the state's future growth will depend on building a deeper technological ecosystem rather than just assembling vehicles. He stated that the next challenge is moving up the value chain into deep-tech capabilities to achieve higher economic value and technological independence.
The state currently leverages existing strengths from its traditional automotive industry, including wiring harnesses, automotive electronics, engineering services, and battery-pack assembly. Additionally, local startups emerging from the IIT Madras ecosystem are actively developing new technologies for charging, batteries, and powertrains.
