Simple Energy has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government for an investment upto INR 2500 crores for constructing the largest electric two-wheeler state-of-the-art plant in Dharmapuri. As part of Phase 1, the first plant of 2 lakh square feet is being constructed near Shoolagiri (Hosur) and has the capacity of upto 1 million production units per year and is slated to be operational by early 2022. This would put the flagship scooter ‘Simple One’ into production and begin deliveries. The home-grown company aims at redefining the electric mobility in India with this initiative.
More details about the investment
As per the MoU signed, the company shall make an initial investment of INR 1000 crores to build its second plant (as part of Phase 2) in 600 acres of land and intends to open the second factory by 2023.
By investing in the second plant, the company has established its intent to build an EV ecosystem in the state, that would also have a future-ready R&D centre, world-class testing facility, a vendor park in accordance with the Build in India initiative. Simple Energy’s flagship e-scooter Simple One launched in August 2021 has the longest range of 203km in eco mode and 236km in IDC in a single charge. Available in four colours, the scooter is the next best substitute to an ICE vehicle in the market.
Official statements
Upon successfully completing its signing agreement with The Tamil Nadu Government, 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 E2W 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.”
Speaking on this announcement, Raghunath Subramanian, Chairman of UiPath India and Investor in UK battery maker, Britishvolt and the board member of Simple Energy said, “Simple Energy has taken a big step in taking the Indian EV industry forward. With this step, we hope to amplify the country’s efforts to promote the tech and auto industries to a global level and compete with global legacy players.”
Ms. Pooja Kulkarni IAS, 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 E2W market. We hope that the partnership with Tamil Nadu will help them become a global player, benefiting the local ecosystem.
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With the announcement of this MoU, the company would want to invest in world-class production capabilities not just for Indian market, but also for exports to eventually create more than 12000 direct and indirect jobs to those in need. Simple Energy also aims at reducing dependence on imports, and increase focus on localization of parts.