(Representative image)

GANDHINAGAR: Tata Motors Limited has proposed to invest over Rs 1,600 crore to manufacture electric vehicles at Motown Sanand, about 40 kms from Ahmedabad. Top company officials recently met senior Gujarat government officers to submit a formal proposal for the electric vehicles project.

It is not clear whether the company will expand its existing facility in Sanand or set up a new unit.

“Several companies have evinced interest in investing for electric vehicles projects in Gujarat. But Tata Motors is the first company that has formally proposed around Rs 1,600 crore to Rs 2,000 crore in a phased manner to produce electric vehicles,” said a senior state government official privy to the development.

Tata Motors spokesperson said: “It is important to note that as part of our stakeholder engagement, we are in constant touch with regulatory bodies and government authorities keeping them apprised on our product development strategy.”

The spokesperson, while terming the development “purely speculative”, added: “We are manufacturing the Tigor EVs (electric vehicles) at Sanand and will continue to leverage our existing operations and manufacturing facilities/investments going forward.”

Tata Motors plans over 5k e-variants of Tigor at Sanand

A senior Gujarat government official said the company has requested to extend the sops offered to Nano to its electric vehicles. “However, the government will decide on it only after due consideration at the highest level. Since, it is a product diversification project, it will be considered as fresh one even if the company uses the same Sanand facility premise for the project,” the officials added.

Tata has a target of making more than 5,000 electric variants of the Tigor model at Sanand plant. Of these, some 250 vehicles have already been manufactured and rolled out in March 2018. Recently, a senior official from Tata Motors indicated that the company has planned to begin its EV initiative from the Sanand plant.

Gujarat is fast emerging as a hub for electric vehicles manufacturing. JSW Energy has already announced its plans to set up electric car plant in Gujarat.

“Suzuki Motors is also looking at electric car production in the state along with a battery plant. Some Japanese and Chinese companies too have shown interest. Other car manufacturers are also exploring opportunities in Gujarat,” government sources said.

Gujarat government has been encouraging use of EVs with the state energy and petrochemicals department preparing a policy for the same. The state government has also proposed a new scheme for buying EVs and creating their charging infrastructure.

(Inputs by Niyati Parikh)

