Startups are playing an increasingly important role in the automotive and electric vehicle (EV) sector, providing key solutions for bigger players, including multinational corporations (MNCs). Sivarajah Ramanathan, Mission Director and Chief Executive Officer of StartupTN, spoke about this during the ‘Tamil Nadu Startup Thiruvizha 2023’ event in Coimbatore. He highlighted the unique opportunity that the EV sector presents for startups and the strong connection between startups, micro, small, and medium enterprises (MSMEs), and large-scale industries in Tamil Nadu. The state government has recognized the potential of EVs and is fostering their growth through various initiatives. One such initiative is the establishment of ‘Startup Manufacturing Centres’ for startups that are involved in manufacturing EVs, robotics, and IoT. These centers provide plug-and-play facilities, enabling startups to commence production quickly. Tamil Nadu already has a mature electronics and automotive ecosystem, making it an ideal location for EV manufacturing.
StartupTN, along with the investment promotion agency Guidance and other stakeholders, recently launched the Automotive, Electric Vehicle (EV), and Smart Mobility Forum. This strategic forum brings together startups, innovators, corporates, experts, industry bodies, incubators, mentors, investors, government departments, and other stakeholders to collaborate and make Tamil Nadu a leader in the EV sector. The forum aims to build a robust EV ecosystem and support startups in becoming major players in the industry.
V Vishnu, Managing Director and CEO of Guidance, emphasized the four pillars of the EV ecosystem: original equipment manufacturers (OEMs), component manufacturers, the battery ecosystem, and circularity, which includes battery recycling. According to Vishnu, there is potential for investment and growth in all these areas. The concentration of large auto companies and startups like Ola and Ather in the Hosur-Chennai belt presents an opportunity to build a strong vendor ecosystem for EV component manufacturing. The TN government is also focusing on battery manufacturing and circularity, recognizing the importance of a comprehensive EV ecosystem.
The commitment to EVs in Tamil Nadu has reached approximately Rs 40,000 crores in the last three years, demonstrating the confidence of investors in the state’s potential. In fact, Tamil Nadu is already a significant player in the EV sector, with 68% of all EV two-wheelers sold in India being manufactured in the state. The government aims to further expand the charging infrastructure, with an expected 1.3 million charging stations in India by 2030. This presents a huge opportunity for entrepreneurs and MSMEs to participate in the EV revolution.
Battery recycling is another area of opportunity, with the potential to reach 128 GWh by 2030. The government is keen on developing the entire EV ecosystem and recognizes the importance of collaboration between stakeholders.
The Tamil Nadu Startup Thiruvizha 2023 event showcased the state’s startup ecosystem and featured more than 50 speakers, including industry leaders, experts, and government officials. The event also had an expo with over 450 stalls and pitching sessions where startups could present their ideas to angel investors and venture capital funds. The government has created a conducive environment for startups by inviting problem statements from government departments, public sector undertakings (PSUs), and corporates and inviting startups to offer innovative solutions. This collaborative approach aims to benefit both startups and the industry as a whole.
Overall, startups in Tamil Nadu are at the forefront of driving innovation and growth in the automotive and EV sector. With strong government support and a conducive ecosystem, the state is well-positioned to become a leader in EV manufacturing and emerge as the EV capital of India.
