Tamil Nadu vs. Gujarat: A Battle for Electric Supremacy in India

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As India charges into an electrified future, two states have emerged as key contenders in the race for electric vehicle (EV) dominance: Tamil Nadu and Gujarat. These states, each with its unique approach to EV adoption, are vying to become the EV hubs of the nation.

The EV Corridors

Tamil Nadu’s EV corridor gracefully winds through the Hosur, Dharmapuri, and Krishnagiri (HDK) belt, nestled just across the Karnataka border. Meanwhile, Gujarat’s corridor weaves across the towns of Sanand, Halol, Hansalpur, and Bhuj.

Policy Initiatives

Tamil Nadu took its first steps into the electric realm in September 2019 when it launched its inaugural EV policy. Notably, this was the same year the Indian government introduced the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME-II) subsidy program. In contrast, Gujarat made a slightly delayed entry, launching its EV policy in June 2021.

EV Sales Standoff

In the battle of EV sales from 2021 to 2023, Gujarat seems to have a slight edge with 165,320 units, while Tamil Nadu closely follows with 146,780 units. Both states exhibit an EV penetration of 3.59%.

Shifting Strategies

Tamil Nadu initially adopted a supply-side incentive strategy to bolster EV adoption. However, recognizing the evolving landscape, the state revamped its policy in February 2023 to focus on demand-side incentives. Gujarat, on the other hand, started on a strong consumer-centric note, emphasizing demand-side incentives right from the beginning.

Leading the Charge: Manufacturers

Tamil Nadu boasts a burgeoning EV manufacturing landscape with prominent players like Montra, Ather, Hyundai, TVS, Ola Electric, Royal Enfield, Raptee, and Switch. In Gujarat, manufacturers such as Toyota, MG, Odysse, Maruti Suzuki, and Tata EV are making their mark.

Charging Infrastructure and Incentives

Tamil Nadu has sanctioned 281 public charging stations under FAME-II and set up 441 stations as of March 2023. Gujarat isn’t far behind, with 278 stations sanctioned and 195 stations already in operation. Tamil Nadu provides a 100% exemption from road tax and registration fees for EVs, while Gujarat offers a 50% exemption for the same.

The Battery Battle

In the realm of battery manufacturing, Tamil Nadu is home to the upcoming Ola Gigafactory, alongside established players like Lucas TVS, Exide, and Munoth Industries. In Gujarat, heavyweights like Toshiba, Suzuki, Denso, and Tata Chemicals Limited dominate the battery-making landscape.

Recycling and Circular Economy

A sustainable, circular economy with robust recycling infrastructure is essential for a thriving EV ecosystem. Yet, both Tamil Nadu and Gujarat have some ground to cover in terms of implementing effective circularity. Delhi-NCR currently leads the nation in recycling efforts.

Investment Commitments

Total investments committed by EV companies in Tamil Nadu between 2020 and 2023 amount to a staggering Rs 40,000 crore. In Gujarat, key players, including Suzuki, Tata, Triton, Shell, and Torrent, have pledged investments worth Rs 35,000 crore.

The Showdown Continues

Tamil Nadu and Gujarat are at the forefront of India’s electric revolution. As the battle for EV supremacy unfolds, it remains to be seen which state will emerge as the nation’s electric vehicle leader. Each state’s distinct approach to policy, manufacturing, and infrastructure development offers a fascinating case study in the quest for an electrified future. The electric showdown continues, and the entire nation is watching with anticipation.

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Abel Mathew

Marketing Enthusiast | Product Marketing at smallcase | Cinephile ----The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Smallcase Technologies Private Limited does not uphold nor promote any of the views / opinions.

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