‘I am confident of strong EV ecosystem being built in Tamil Nadu'
Renault India
, Venkatram Mamillapalle has seen Tamil Nadu's Oragadam belt develop into an automotive manufacturing hub even as the Renault Nissan factory made cars for India and exported from there. In a chat with TOI, he discusses TN's next big leap into EVs, infrastructure, ecosystem, and the near future. Excerpts:
Question:
Renault has launched the new Triber, and three new products are to be rolled out in the next two years. What is the capacity utilisation at the Oragadam plant? Will it increase?
Renault MD:
The Oragadam plant is still used by both the partners, Renault as well as Nissan. So, together, we are currently at about 50% utilization. The new Triber will help enhance our volumes for this year and in the future as well. And the Triber will be exported to all those countries where the old Triber had been going, and the first shipment should leave Ennore Port sometime in the first week of August. The first export shipment will be headed to South Africa.
Question:
Two years ago, Renault announced a 5,400 crore investment in its Indian business in general, and in product development in particular. The new products in the pipeline were set to include some EVs as well. When will we see electric vehicles rolling out of your Oragadam plant?
Renault MD:
When we announced the new investment in February 2023, we said we were going to launch four new products, two for Nissan, two for Renault. Later on, we said we are going to launch four new products, and we are still holding to that. Starting with the new Triber, we will launch four products in the next two years. We did say that we are also looking to launch an EV as early as possible because HEV and EV are arm's length technologies for us, and they are already available in Europe (whether they are ethanol, hybrids, or electric). We are still waiting for regulatory clarifications on a host of issues like CAFE policy, tax issues related to EVs, and the fact that HEVs currently don't have any tax benefits today. The carbon trading policy is also not clear, and the ecosystem that has to support an EV in the Indian market is not completely ready.
Question:
How does Tamil Nadu's EV manufacturing ecosystem compare to that of other states? What more should it do to support automobile companies?
Renault MD:
I've been in touch with Guidance Tamil Nadu and the ministry of industries in TN. Recently, we had a positive discussion and they're encouraging investments in Tamil Nadu for new technologies. I'm sure there are many suppliers interested in building the EV ecosystem in TN. They're already in talks or discussions with the government, thanks to the government's ability and agility in supporting such investments. I admire the way Tamil Nadu is moving forward. The govt is going door-to-door to speak to suppliers about investing. I am confident they will build a strong EV ecosystem in Tamil Nadu.
Question:
Have you spoken to the govt regarding getting into EV production?
Renault MD:
We've been speaking with them to support the development of a robust EV ecosystem—making it as wide and as deep as possible. Their efforts are focused on helping demand grow, which in turn allows EV manufacturers to justify their investments and sell their cars. These discussions have been very positively received.
Question:
Will the presence of big-ticket EV investors like VinFast help catalyse the supplier ecosystem in TN?
Renault MD:
Everything acts as a catalyst to develop the ecosystem. It should be a group effort, along with strong govt support, which is already happening. The way the govt is promoting the state's subsidies and supportive programmes is helping.
Question:
What can be done to ease the congestion at Chennai's ports?
Renault MD:
There are two ports in Chennai, and Renault operates out of the Ennore Port. No doubt, logistically, the state does need better port infrastructure. Ship visits to these ports should be more frequent. When demand increases, that will follow. Especially with our focus on Europe and Latin America, improvements in port infrastructure are necessary. One round of discussions has already taken place. We are waiting for further feedback following discussions with the commerce and industry ministry at the central level. These discussions were primarily about improving logistics from our ports towards Europe and expanding infrastructure as well.
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