Tamil Nadu, Apr 5 (KNN) The Tamil Nadu government is planning to establish a new automotive cluster from the ground up at Thoothukudi in southern Tamil Nadu.

This move is driven by the upcoming electric vehicle (EV) manufacturing project of VinFast, a Vietnam-based EV maker, and to support future auto investments in the state.

VinFast is setting up a new integrated EV manufacturing unit in Thoothukudi with a planned investment of Rs 4000 crore over 5 years. The upcoming facility is expected to have an annual production capacity of up to 150,000 EV units, reported businessline.

"With VinFast coming in and many other industries making investments, we are developing Thoothukudi to be another auto cluster and we're starting from the ground up there," said Thiru Srinivasan, Senior Advisor Electric Vehicle Sector, FameTN.

The state government is also planning to establish two more common facilities and infrastructure for EV battery manufacturing and vehicle testing.

Tamil Nadu aims to build a robust ecosystem for motors, batteries, and power electronics to support the growing EV industry.

"We are starting discussions with all stakeholders of the EV industry and there would be a bigger focus on building an ecosystem for motors, batteries, and power electronics," Srinivasan added.

A recent report highlighted that around 20 per cent of the 759 auto component manufacturers in the Hosur cluster would be highly or moderately impacted by the transition from internal combustion engine (ICE) vehicles to EVs.

The report emphasised the need for a tailored strategy for each auto cluster to facilitate a smooth shift to EVs. With its strategic focus on nurturing the EV ecosystem, Tamil Nadu is positioning itself as a leading hub for electric mobility in India.

(KNN Bureau)