Tesla India Entry: Tesla

Velusamy R, President of Automotive Technology and Product Development at M&M

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Tamil Nadu’s electric vehicle (EV) ecosystem has come a long way since 2021, when Mahindra and Mahindra (M&M) began developing its born-electric SUVs at the Mahindra Research Valley (MRV) near Chennai. In an interview with The Times of India, Velusamy R, President of Automotive Technology and Product Development at M&M, spoke about the transformation of the state’s EV landscape and what lies ahead.Velusamy, who set up MRV and now leads M&M’s EV strategy, recalled the early days of building the electric SUV platform. “When we started in 2021, Tamil Nadu’s EV ecosystem was in a nascent stage. There was more curiosity than capability,” he said. Supplier partners were only beginning to develop EV-specific expertise, academic institutions hadn’t fully pivoted towards EV research, and policy frameworks were still evolving.Despite these limitations, Mahindra invested in building capabilities by collaborating with global experts across Europe, the US, Korea, and the UK to upgrade the skills of its engineering workforce. Over time, MRV became a hub for innovation, enabling the development of the company’s electric-origin SUVs and fostering a culture of component and software innovation.

Tamil Nadu emerges as a leading EV hub

Velusamy highlighted the rapid progress made since then. “Today, tier-1 and tier-2 suppliers are actively investing in EV technologies, and the state government has provided strong policy support, including road tax exemptions and capital subsidies,” he said.Coimbatore, where Mahindra has established its Software Defined Vehicle (SDV) centre, has become a key location for developing software and electrical architecture for EVs. Velusamy noted that Tamil Nadu’s growing charging infrastructure and its strong tech base have been instrumental in building Mahindra’s ground-up electric platforms.

Competition from Tesla seen as a positive force

Responding to Tesla’s entry into the Indian market, Velusamy welcomed the competition in the premium EV segment. “It will raise the bar, but it also drives innovation. As Anand Mahindra said, ‘Looking forward to seeing you at the charging station,’” he remarked, adding that while the immediate manufacturing impact may be limited, Tesla’s entry sends the right signal to suppliers to align with global standards.
He also lauded the Tamil Nadu government’s efforts to expand its EV roadmap to include battery recycling and raw material strategies. “The state is looking at EVs from a full life-cycle perspective, not just from a manufacturing angle,” Velusamy said, adding that other Indian states are also beginning to adopt such comprehensive approaches under central government guidelines.

What states need to support EV development

On what it takes for a state to become a successful EV product development hub, Velusamy stressed the need for engineering talent, electronics and software supplier networks, battery and cell development capabilities, and strong R&D infrastructure. He believes Tamil Nadu already has a solid foundation in all these areas.

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