The EV battle in the two-wheeler space is truly heating up. EV start-up, Simple Energy has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government for an investment of up to INR 2,500 crore over the next five years to set-up the largest electric two-wheeler state-of-the-art plant in Dharmapuri.
Notably, the laurel of the world’s largest manufacturing plant for two-wheelers currently resides with Ola Electric – Simple Energy’s competitor in the fast evolving Indian EV market. The company has built its Futurefactory at a 500 acre site near Krishnagiri in Tamil Nadu at an investment of INR 2,400 crore. Ola is expected to have an annual capacity of 10 million vehicles.
The Simple Energy factory, meanwhile, is being planned to set-up in two phases. As part of Phase 1, the first plant is being constructed over an area of 200,000 sq ft near Shoolagiri (Hosur) and has the capacity to produce up to one million units per year, once it gets operational by early 2022. This would put the flagship scooter ‘Simple One’ into production and begin deliveries, the company has said.
The second plant (as part of Phase 2) will see an initial investment of INR 1,000 crore in a 600 acre plot. The second factory is slated to open by 2023. As per the MoU, the company would also have a future-ready R&D centre, world-class testing facility and a vendor park.
Suhas Rajkumar, Founder and CEO, Simple Energy, said the Tamil Nadu government gave the company the confidence in creating an EV ecosystem in the State, which can be sustainable in achieving its long-term goals.
“With the MoU, we commit to leading the Indian e2W market 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,” he said.
This step is expected 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, Chairman, UiPath India and Investor in UK battery maker, Britishvolt and board member of Simple Energy.
Pooja Kulkarni (IAS), MD & CEO – Guidance, Tamil Nadu hoped that the partnership with Tamil Nadu will help Simple Energy become a global player, benefiting the local ecosystem.
With this investment, Simple Energy wishes to eventually create over 12,000 direct and indirect jobs and aims to reduce dependence on imports, and increase focus on localisation of parts.