In a formal note Mitsui & Company and its joint venture partner from Taiwan, TECO Electric & Machinery Co. Ltd. plan to manufacture motors for electric vehicles (EVs) in India from next year.
TEMICO India, will build a USD 14 million production facility in Bangalore. With an annual capacity to produce 110,000 electric motors, the said unit is expected to commence manufacturing operations by end of 2020.
TEMICO India was set up by Mitsui and TECO in April last year wherein the former holds 40% and the remaining 60% stake is with the latter.
The official note said that the said investment is being made by the JV to pursue development, manufacturing and sales of EV motors and powertrains for global markets.
This can clearly be attributed to the Modi government’s policies to promote the local manufacturing and adoption of EVs in India. Earlier this year, the government allotted incentives of ₹10,000 crore to fast-forward the localization of key EV parts under Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India, or FAME 2, scheme.
Reduced tax rates on new manufacturing units, tax rebates on interest payments on loans for EVs and custom duty exemption on critical EV parts are among other key steps aimed at propelling EV localization in India.
This is a Syndicate News-Feed; Edited by Clean-Future Team