Electric mobility start-up DAO EvTech has drawn up plans to invest Rs 100 crore in Tamil Nadu and employ about 2,000 people by 2025, the company said on Sunday.
DAO commenced production at its facility in Chakan, Pune and has enabled two-wheeler electric vehicle manufacturing capabilities and investments from US-based DAO Evtech LLC and its promoter Michael Liu.
DAO EvTech has planned to invest $100 million in India apart from the Rs 100 crore for Tamil Nadu and showcased a new line of electric vehicles in the city recently.
"Tamil Nadu market is crucial to any EV two-wheeler maker. Chennai has the highest two-wheeler penetration rate at 73 percent, which is double that of major cities like Mumbai and Bengaluru," Liu said.
"EV is a growing business that is more focused on young individuals who embrace technology quickly. The state has a large population making Tamil Nadu an EV-friendly state. We will continue investing $100 million in India and in 2023, we will set aside USD 20 million for the development of novel products," Liu said.
"With this $100 million investment, we have specifically set aside Rs 100 crore for Tamil Nadu. With our expansion strategy, we expect to generate 2,000 new positions over the next two years," he said.
The company currently has a dealership network in Madurai, Pollachi, Coimbatore and Thanjavur. "The goal is to launch 20 dealerships in Chennai", he noted.
On strengthening its footprint, DAO EvTech said the company would focus on Tier II and III markets with its varied product range.
"In addition to our flagship DAO 703, we will offer the ZOR 405. With a 220 kg load capacity, ZOR 405 has a low centre of gravity, sturdy foot stand and Dual suspension." the company said.