Addressing the Future Powertrain Conclave, organised by Autocar Professional along with Guidance Tamil Nadu, he said, “we need a balanced approach keeping an eye on both internal combustion engine (ICE) vehicles and EVs.” Rajaa said that India still lacked a clear strategy for EV adaption, including battery disposal and raw material sourcing.
Tamil Nadu, according to him, has set a target for EV transition by 2035. Tamil Nadu has long established itself as India’s automotive capital, leading the industry with over 40% of the country’s auto component production. The state’s rich legacy in manufacturing, coupled with forward-thinking policies, continues to attract global original equipment manufacturers (OEMs) and suppliers.
“When Tamil Nadu looks at the market, we look at the global scenario. Our manufacturers get the best possible outcomes through government policy,” he said. While the global EV market had slowed down, it was picking up again, he said.
The state was committed to supporting EV adaption through incentives such as road tax exemptions. However, Rajaa emphasized the need for a market-driven transition, stating, “When customers decide to switch to EVs, there’s no stopping them. At that point, the government’s role is to ensure economic stability and infrastructure support.”
Tamil Nadu’s robust auto ecosystem was a key reason why OEMs continue to invest in the state, he said. “We have a strong legacy — companies like Sundaram Clayton and Lucas TVS give OEMs confidence. Our MSME sector balances out component manufacturing, ensuring a competitive and diverse supply chain,” Rajaa said. The state’s talent pool, particularly in automotive engineering, further strengthened its position. Hyundai, for instance, claimed 70% localization in Tamil Nadu, showcasing the state’s deep-rooted manufacturing expertise.
Tamil Nadu is also a hub for motorsports, a factor that has contributed to innovation and passion within the industry. “Out of four race circuits in India, three are in Tamil Nadu. Motorsport fosters a competitive spirit, and that culture translates into manufacturing excellence,” Rajaa said.
The state’s ability to adapt and support its supplier base was evident during the COVID-19 pandemic when local manufacturers quickly adjusted to meet supply chain disruptions. “From lathes in Coimbatore to coding in Taramani, Tamil Nadu is an automotive powerhouse,” he said.
Rajaa lauded companies such as Mahindra Research Valley, where nearly 70% of the talent is from Tamil Nadu. “R&D is the future across all sectors, but it needs support. Governments must fund R&D and foster a culture where failure is seen as a step toward success,” he added.
Tamil Nadu is also a leader in EV manufacturing, particularly in two-wheelers. “In 2016, I spoke about EV policies. By 2019, we had one. Today, 70% of India’s EV two-wheelers are made here,” Rajaa noted, crediting policy continuity and investor confidence for this success.
One of Tamil Nadu’s biggest wins in the EV space has been attracting VinFast. “They were considering other locations, but we acted fast. Within days, we negotiated and finalized the deal, securing a ₹16,000 crore investment and 7,000 jobs,” Rajaa said. The upcoming factory in Tuticorin would be operational in record time, showcasing Tamil Nadu’s efficiency.
Balancing ICE and EVs remained a key strategy, he said. “Tamil Nadu is rooted in metal, rising in code. We will support ICE manufacturers while leading in EVs. Talent, technology, and timing will drive our growth,” Rajaa added.
