Murugappa Group Reaffirms $1 Billion EV Revenue Goal by 2029, Sets ₹300 Crore Capex for FY26.

Tube Investments of India Ltd (TII), the engineering arm of Murugappa Group, has reaffirmed its $1 billion revenue target for its electric vehicle (EV) business by 2029, despite ongoing market shifts. The company has earmarked ₹300 crore in capital expenditure for FY26 across all EV categories.

TI Clean Mobility, TII’s EV division, is prioritizing market expansion and volume growth in the near term. The company aims to achieve operational break-even for its existing EV offerings in the next financial year as it scales up production.

“We remain confident in our $1 billion revenue goal and profitability by 2029,” said Vellayan Subbiah, Executive Vice Chairman of TII, during the company’s Q3FY25 earnings call. He emphasized that TI Clean Mobility is strategically positioned to capitalize on evolving market opportunities, particularly in the electric heavy truck segment, where it currently has no direct competitors.

In the three-wheeler EV market, Subbiah noted that the transition to electric is gaining traction, especially as more key players enter the segment. While legacy brands have an edge in distribution, he believes TI Clean Mobility can carve out a strong market position.

The company maintained stable sales volumes for electric three-wheelers in Q3, even as the total industry volume (TIV) grew by 19%, largely driven by festive demand in North and West India. TI Clean Mobility, which has a stronger presence in the South, is set to expand its reach.

New product launches, including an electric small commercial vehicle and an electric cargo three-wheeler, are expected this quarter, with full-fledged commercial sales beginning in April 2025. “Currently, 25% of the total three-wheeler passenger market is electric, and we expect substantial growth in both passenger and cargo EVs,” Subbiah added.

HBL