Electric two-wheeler maker Simple Energy on Wednesday said it will invest up to Rs 2,500 crore over the next five years to set up an electric vehicle manufacturing facility in Tamil Nadu.
The proposed facility, spread in 600 acres of land, would be the company's second such production unit and is expected to be functional by 2023, the Bengaluru-based company said in a release.
Simple Energy has signed a memorandum of understanding with the Tamil Nadu government for an investment of up to Rs 2,500 crore for constructing the largest electric two-wheeler state-of-the-art plant in Dharmapuri, the company said.
Tamil Nadu gave us the confidence in creating the EV ecosystem, which can be sustainable in achieving our long-term goals. ''With the MoU, we commit to leading the Indian E2W market in India by setting up a resourceful ecosystem that will help the country’s vision to lower carbon footprints at a faster pace. Simple Energy will thus redefine electric mobility in India,'' said Suhas Rajkumar, Founder and CEO of Simple Energy.
The EV maker's first manufacturing unit with a capacity to produce 1-million units per annum, spread in 2-lakh square feet is being constructed near Shoolagiri (Hosur). The Hosur unit is scheduled to commence operations from early next year, as per Simple Energy.
This would put Simple Energy's flagship scooter ‘Simple One’ into production, it said. As per the initial pact, the company will make an initial investment of Rs 1,000 crore to build its second plant (as part of Phase 2) in 600 acres of land and intends to open the second factory by 2023.
By investing in the second plant, the company has established its intent to build an EV ecosystem in the state, that would also have a future-ready R&D centre, world-class testing facility, a vendor park under the Build in India initiative, Simple Energy said.
''Simple Energy has taken a big step in taking the Indian EV industry forward. With this step, we hope to amplify the country's efforts to promote the tech and auto industries to a global level and compete with global legacy players,” said Raghunath Subramanian, Simple Energy Board member and Chairman of UiPath India and Investor in UK battery maker, Britishvolt.
With the announcement of this MoU, the company would want to invest in world-class production capabilities not just for the Indian market, but also for exports to eventually create more than 12,000 direct and indirect jobs for those in need, according to the release. Besides, the company also aims at reducing dependence on imports, and increasing focus on localisation of parts, it said.
''The electric vehicle industry is growing in popularity throughout the world. The MoU with Simple Energy is to create a facility that will broaden and deepen the E2W market. We hope that the partnership with Tamil Nadu will help them become a global player, benefiting the local ecosystem,'' said Pooja Kulkarni IAS, MD & CEO- Guidance, Tamil Nadu.
(With inputs from PTI)