TI Clean Mobility, the electric vehicle arm of Murugappa Group, has planned a capex of about ₹471 crore, with a significant portion of ₹320 crore allocated to setting up a factory in Chennai for manufacturing electric small commercial vehicles.
A subsidiary of Tube Investments of India Ltd, the company is strategically expanding its production capabilities across four vehicle segments: electric three-wheelers, electric small commercial vehicles, electric heavy commercial vehicles, and electric tractors.
Anticipated annual production capacities include approximately 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, the company management indicated during the Q4FY24 earnings call.
TI Clean Mobility is aiming to launch its electric small commercial vehicle under the subsidiary Tivolt Electric Vehicles in the second quarter of this fiscal. This vehicle will be marketed under the Montra brand, which is currently used for selling electric three-wheelers.
e-three-wheeler sales
Discussing the electric three-wheeler business, the management said e-three-wheeler sales were impacted due to the transition from the FAME scheme to the new EMPS scheme. The electric three-wheeler industry reported a decline in sales to about 42,000 units in April 2024 when compared with 61,000 units in March 2024.
TI Clean Mobility sold 500 plus units per month during Q4 of FY23. As a result of the change in the subsidy scheme, its monthly sales dropped to about 200 units in April. To address the impact of this transition, the company implemented a price hike for its electric three-wheelers and absorbed some costs.
The management said its electric autorickshaw Montra, which is being sold in the southern market, is set to enter the Northern market by the end of the financial year. The company has established 63 dealerships and plans to double this number by the fiscal year-end. Additionally, it is working on introducing a cargo version of its three-wheelers, with homologation processes currently underway. .
For electric trucks, the company has an order backlog of 35-40 units, expected to be fulfilled by May or June. Currently, 70 trucks are operational, and the company is engaging with several large customers for additional electric truck orders.
Plans are underway to launch electric tractors in the third quarter of this fiscal year. To support its expansion and growth initiatives, TICMPL has been raising funds, having already secured about Rs.2530 crore out of the targeted ₹3,000 crore.