Engineering firm Tube Investments of India Ltd is aiming to expand its presence in the electric vehicle (EV) market by capitalizing on the opportunities presented by electric tractors in agriculture and e-trucks in commercial vehicles.
The company, a part of the Murugappa Group, is currently involved in the production of e-tractors in Chennai and e-trucks in Manesar. The shift towards sustainable mobility and the need to reduce CO2 emissions are driving the adoption of cleaner modes of transportation, according to Executive Chairman M A M Arunachalam.
Tube Investments ventured into the EV business by acquiring a majority stake in IPLTech Electric Pvt Ltd, allowing it to become an original equipment manufacturer (OEM) of zero-emission vehicles.
The company’s Montra brand of electric three-wheelers has received positive feedback, and it envisions significant opportunities in tractors due to government policies promoting farm mechanization and green energy programs.
The electric-medium and heavy commercial vehicle segment also holds vast untapped potential. In terms of EV battery manufacturing, the company expects a reduction in import dependence on lithium with the discovery of substantial lithium deposits in Jammu and Kashmir and Degana in Rajasthan.
Tube Investments is heavily focused on the EV segment, aiming to operate across multiple platforms within the EV spectrum and anticipating tremendous growth opportunities.
The supportive government policies in India contribute to the optimistic outlook for the EV industry, which is projected to reach a market value of USD 7.09 billion by 2025, according to the India Energy Storage Alliance (IESA) report.
The company plans to introduce three different variants of four-wheel-drive tractors for different user segments and is developing production facilities for their launch in the fiscal year 2023-2024.
In the electric-commercial vehicle segment, the acquisition of IPLTech Electric Pvt Ltd provides access to the EV-medium and heavy commercial vehicle market, with plans to manufacture 55-tonne trucks for short haulage operations.
The manufacturing facility for e-trucks is already in progress in Manesar, and separate distribution networks will be established to support EV platforms.