EV maker Simple Energy to set up a manufacturing facility worth Rs. 2,500 crore in Hosur
Bangalore-based electric two-wheeler manufacturer Simple Energy has announced that it has signed an MoU with the Tamil Nadu government for an investment of up to Rs 2,500 crore for constructing the largest electric two-wheeler manufacturing plant in Dharampuri.
As part of Phase 1, the first plant of 200,000 square feet is being built near Shoolagiri (Hosur) and has the capacity of up to a million production units per year, and is slated to be operational by early 2022.
In addition, it plans to 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 wants to establish its intent to build an EV ecosystem in the state, that would also have an R&D centre, testing facility, and a vendor park.
Suhas Rajkumar, founder, and CEO of Simple Energy stated "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."
Raghunath Subramanian, Chairman of UiPath India and Investor in UK battery maker, Britishvolt and the board member of 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."
Pooja Kulkarni IAS, MD, and CEO, Guidance, Tamil Nadu 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.
In terms of manufacturing capacity, the company says it while it will be future-ready with a million-unit capacity per annum, "the idea is to start with 100,000 units per annum and depending on the market response it will adjust the output."
