Hosur in top gear as e-scooter firms line up

Hosur in top gear as e-scooter firms line up

A senior official said that Tamil Nadu is in talks with Exide and Amara Raja to set up their units to manufacture batteries

The bustling industrial city of Hosur, located just outside Bengaluru, and areas in the adjoining districts of Krishnagiri and Dharmapuri are fast emerging as a manufacturing hub for e-scooters and their accessories like batteries.

Five companies, including Ola, have signed Memorandums of Understanding (MoUs) with the Tamil Nadu government for setting up factories to manufacture e-scooters in and around Hosur in Krishnagiri district. 

Ola, Ather, Sri Varu Motors, and Simple Energy will manufacture e-scooters from their brand-new factories, while Ampere will invest Rs 700 crore in its manufacturing unit in Ranipet. TVS Motor Company is rolling out electric two-wheelers from its sprawling unit in Hosur. 

With e-scooter manufacturers lining up, the state government is now turning its gaze towards wooing top battery makers in the country, as it wants the entire e-scooter ecosystem based out of the region.

Read | Electric vehicle boom is pay-dirt for factory machinery makers

A senior government official told DH that Guidance Tamil Nadu is in talks with big names in the sector like Exide and Amara Raja to set up their units to manufacture batteries for e-scooters. Lucas-TVS, ELETS, Li Energy and Stanadyne have already signed MoUs for setting up their units to produce batteries for electric two-wheelers. 

“To create an eco-system, we need both scooter manufacturers and producers of accessories like batteries in the same region," the official said. "While we continue to woo more electric scooter companies, we are also focusing on getting more battery makers to send the right message to prospective investors. Once the big names come, others follow suit."

Hosur is home to many two-wheeler majors and the state government wants to convert it into a hub for e-scooters, much like it transformed Chennai into India’s very own Detroit. 

“Hosur is a developed town and is one of the favourite destinations for investors due to its proximity to Bengaluru. Another advantage for the state government is its agencies possess huge land banks in Krishnagiri and Dharmapuri districts. Most of the new units are coming up here,” the official said. 

The state has had an exclusive EV policy since 2019 that offers sops like 100% reimbursement of SGST till December 31, 2030, 15% capital subsidy and 100% electricity tax exemption till December 2025. It also provides a 20% capital subsidy for EV battery manufacturing till December 2022. 
Consortium of Indian Association (CIA) Convenor K E Raghunathan said the Tamil Nadu government should ensure that the entire value chain of electric vehicle manufacturing is in Tamil Nadu and that the state provides end-to-end solutions. 



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