Electric vehicles (EVs) are taking the world by storm and India is one of the biggest electric markets in the world. Tamil Nadu and Gujarat are the frontrunners in the race for EV dominance in India. These states, with their unique approach towards the adoption of electric vehicles, are battling to become the top EV hubs of the nation.
Tamil Nadu surpassed Gujarat in total EV registrations in 2023
Tamil Nadu, in 2023, overtook Gujarat to become the fourth-largest player among Indian states supported by an adoption of battery-powered vehicles and favourable policies.
Its EV corridor sits through the Hosur, Dharmapuri, and Krishnagiri (HDK) belt, right across their border with Karnataka. The main corridor in Gujarat weaves across the towns of Sanand, Halol, Hansalpur, and Bhuj.
Uttar Pradesh had been on top mainly due to the very high adoption of e-rickshaws in its towns and cities, which make up more than 78% of the total EV registrations within that state. In this category, Maharashtra was in the second position, and Karnataka was third.
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If UP’s e-rickshaws were excluded from estimates, Tamil Nadu would become the third-largest player amongst Indian states in 2023.
Tamil Nadu’s EV registrations grew to 90,241 units from 66,954 units, while Gujarat’s EV volumes stood at 88,621 units against 68,997 units.
Here are the top players in the electric two-wheeler sales in Tamil Nadu:
- Ather Energy – The leader in terms of volume with 15,825 units sold in 2023
- TVS Motor – 14,393 units
- Ola Electric – 13,608 units
- Greaves Electric – 13,597 units
The Tamil Nadu state government has already reported that it plans to raise more than $6bn in investments in the sector in the near future, creating 150,000 jobs over the next 5 years.
The government has also launched a revised Tamil Nadu Electric Vehicles Policy 2023 and selected Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli as EV hubs to boost growth.
Tamil Nadu, Gujarat, or Maharashtra possible choices for $3bn Tesla plant in India
In April 2024, Tesla announced that they were sending over a team to India to scout for possible locations for a $2-$3bn electric car plant. Tesla’s push into manufacturing in India has come at a time when EV demand is slowing all over the world, and competition is heating up in China.
The main EV markets in the world, the United States and China, have bred several competitors in the space, causing Tesla to rapidly lose market share. Consequently, the carmaker reported a drop in its first-quarter deliveries and broadly missed management estimates.
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Key information at a glance
Here’s a list of information about EV sales and manufacturing in Tamil Nadu and Gujarat for your reference:
| Tamil Nadu | Gujarat | |
| Policy initiatives | Took its first steps in Sep-19 when it launched its first EV policy. This was also when the government introduced the FAME-II subsidy program | Gujarat entered the market a little late compared to TN, launching its EV policies in Jun-21 |
| EV Sales | Gujarat seems to have sold more EVs in the state with 165,320 units from 2021-23 | TN was in close pursuit with 146,780 units in the same period |
| Penetration | 3.59% | 3.59% |
| Strategy | Supply-side strategy to boost adoption. Increasing manufacturing and decreasing prices was the initial strategy. Now, the state has delved into demand-side incentives too. | Gujarat had started off on a strong consumer-centric note, making demand-side growth their only strategy |
| Manufacturers | Montra, Ather, Hyundai, TVS, Ola Electric, Royal Enfield, Raptee, and Switch | Toyota, MG, Odysse, Maruti Suzuki, and Tata EV |
| Batteries | Tamil Nadu is home to the upcoming Ola Gigafactory, along with players like Lucas TVS, Exide, and Munoth Industries | Gujarat hosts heavyweights like Toshiba, Suzuki, Denso, and Tata Chemicals Ltd. |
