TI Clean Mobility Commits ₹320 Crore Investment to Construct Electric Small-Truck Factory

TI Clean Mobility, the electric vehicle division of the Murugappa Group, is embarking on a significant investment drive, earmarking approximately ₹471 crore for expansion, with a substantial ₹320 crore portion allocated to establish a factory in Chennai dedicated to producing electric small commercial vehicles.

A subsidiary of Tube Investments of India Ltd, TI Clean Mobility strategically aims to bolster its manufacturing capabilities across four vehicle segments: electric three-wheelers, electric small commercial vehicles, electric heavy commercial vehicles, and electric tractors.

During the Q4FY24 earnings call, company management outlined anticipated annual production capacities, including 75,000 units for e-three-wheelers, 50,000 units for electric small commercial vehicles, 25,000 units for electric tractors, and 4,500 units for electric heavy commercial vehicles.

TI Clean Mobility is gearing up to unveil its electric small commercial vehicle under the Tivolt Electric Vehicles subsidiary in the second quarter of the fiscal year. This vehicle will be marketed under the Montra brand, known for its electric three-wheelers.

In discussions about the electric three-wheeler segment, management acknowledged sales challenges stemming from the transition from the FAME scheme to the new EMPS scheme. April 2024 saw a sales decline to about 42,000 units from 61,000 units in March 2024.

Despite challenges, TI Clean Mobility managed to sustain monthly sales, albeit at reduced levels, implementing price adjustments to mitigate the impact of subsidy scheme changes.

Expanding its market reach, TI Clean Mobility plans to introduce the electric autorickshaw Montra into Northern markets by the end of the financial year, backed by an expanding dealership network set to double by fiscal year-end. Additionally, plans are underway to introduce cargo variants of three-wheelers, currently undergoing homologation processes.

In the electric truck segment, the company has a backlog of 35-40 units, expected to be fulfilled by May or June. Engagements with large customers for additional electric truck orders are underway, with 70 trucks currently operational.

Looking ahead, TI Clean Mobility aims to launch electric tractors in the third quarter of the fiscal year. To support its ambitious expansion plans, the company has been actively raising funds, securing approximately ₹2530 crore out of the targeted ₹3,000 crore.

HBL