Companies

Simple Energy to invest ₹2,500 crore in setting up electric two-wheeler plant in TN

Our Bureau | | Updated on: Dec 08, 2021
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The company’s flagship e-scooter Simple One launched in August has a range of 203 km in eco mode and 236 km in IDC in a single charge

EV manufacturer Simple Energy has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government for an investment of upto ₹2,500 crore for constructing an electric two-wheeler plant in Dharmapuri.

Under Phase 1, the first plant of 2 lakh square feet is being constructed near Shoolagiri (Hosur) and will have a capacity of up to 1 million production units per year, and is slated to be operational by early 2022. This will put the company’s flagship scooter ‘Simple One’ into production and begin deliveries.

As per the MoU, the company will make an initial investment of ₹1,000 crore to build its second plant (as part of Phase 2) in 600 acres of land and intends to open the second factory by 2023. Simple Energy’s flagship e-scooter Simple One launched in August 2021 has a range of 203 km in eco mode and 236 km in IDC in a single charge.

Commenting on the development, Suhas Rajkumar, Founder, and CEO of Simple Energy, said “Tamil Nadu gave us the confidence in creating the EV ecosystem which can be sustainable in achieving our long-term goals. With the MoU, we commit to leading the Indian electric two-wheeler market in India by setting up a resourceful ecosystem that will help the country’s vision to lower carbon footprints at a faster pace. Simple Energy will thus redefine electric mobility in India."

Pooja Kulkarni, MD & CEO- Guidance, Tamil Nadu, said, “The electric vehicle industry is growing in popularity throughout the world. The MoU with Simple Energy is to create a facility that will broaden and deepen the electric two-wheeler market. We hope that the partnership with Tamil Nadu will help them become a global player, benefiting the local ecosystem.”

The company wants to invest in world-class production capabilities not just for the Indian market, but also for exports to eventually create more than 12,000 direct and indirect jobs. Simple Energy also aims to reduce dependence on imports, and increase focus on localisation of parts.

Published on December 08, 2021

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