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Simple Energy, a two-year-old electric vehicle company, said on Tuesday that it has inked a Memorandum of Understanding (MoU) with the Tamil Nadu Government to build the world’s largest electric two-wheeler facility in Dharmapuri district of Tamil Nadu state.
Simple Energy has planned to invest Rs. 2,500 crore in a phased manner in the upcoming 5 years.
In the first phase of investment of Rs. 350 crore, the first facility, which would cover 2 lakh square feet and have a throughput of 1 million units per year, will be built at Shoolagiri. It is expected to be operating by the beginning of next year. This factory will manufacture and transport the company’s flagship electric scooter, the ‘Simple One,’ according to a press release.
As per the signed MoU, Simple Energy would make a preliminary expenditure of Rs 1,000 crores to establish its second plant (as part of phase two) on 600 acres of land, with the intention of opening the second facility by 2023. This plant would also include a research and development centre, a vendor park, and a testing facility.
It is worth noting that Simple Energy’s second plant (600-acres) would be larger than Ola Electric’s 500-acre mega-complex in Tamil Nadu’s Krishnagiri region, which has a 10 million unit per annum production capacity.
The Simple One scooter has a range of 236 kilometres, cited to be the world’s longest-range e-scooter, thanks to its 4.5 KW portable battery pack. Priced at Rs 1.1 lakh, the company claimed over 30,000 orders in August alone, but delivery dates are yet to be decided.
Simple Energy Founder & CEO, Suhas Rajkumar says “With the MoU, we commit to leading the Indian E2W market by setting up a resourceful ecosystem,” to aid the country’s objective of reducing carbon output at a faster rate, and will reshape electric mobility in India.
“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, Chairman of UiPath & Simple Energy board member.
The MoU with Simple Energy seeks to develop a facility that would widen and strengthen the E2W sector and assist them in becoming a global player, helping the local ecosystem., according to Pooja Kulkarni IAS, MD & CEO – Guidance, Tamil Nadu.
All of the major electric two-wheeler businesses have announced big expansion plans in the previous two months.
Based on these statements alone, India will have a total installed capacity of almost 27 million electric two-wheelers by 2025.