Murugappa’s TII to Scale EV Arm with Fresh Investment

Murugappa Group’s engineering flagship, Tube Investments of India (TII), has signalled a stronger commitment to electric mobility by planning an additional investment of ₹500 crore to ₹750 crore in its EV subsidiary, TI Clean Mobility. This move comes as the company looks to scale up operations, sharpen competitiveness, and steer the business toward financial stability after initial setbacks and slower-than-expected ramp-up.

With around ₹750 crore already infused into the EV venture, the fresh capital injection underscores TII’s long-term confidence in the transition from internal combustion engine (ICE) vehicles to electric mobility. Speaking during the company’s Q3 FY26 earnings call, Vice Chairman Vellayan Subbiah said that TI Clean Mobility has now reached a stage where manufacturing capabilities are in place and early signs of traction are visible across newly launched products, making it the right time to deepen investment.

Focus on Growth, Costs, and Break-even

The proposed funding will be strategically directed toward improving cost efficiency, strengthening distribution networks, and accelerating product innovation. The management has outlined a clear financial roadmap, targeting EBITDA and cash flow break-even as the first major milestone before moving toward sustained profitability.

However, the journey has not been smooth. TI Clean Mobility reported a loss of ₹164.31 crore in the December 2025 quarter, reflecting the challenges of scaling in a competitive and evolving EV market. While acknowledging that growth has taken longer than anticipated, TII’s leadership reiterated its belief in the sector’s long-term potential, driven by policy support, rising adoption, and a gradual shift away from fossil-fuel vehicles.

Performance Across EV Segments

TI Clean Mobility operates across four key electric vehicle categories: electric three-wheelers, small commercial vehicles (SCVs), medium and heavy commercial vehicles (M&HCVs), and electric tractors. The company expects heavy trucks and three-wheelers to be the first segments to reach break-even, followed by SCVs and tractors.

In the December quarter, TI Clean Mobility recorded sales of 1,816 electric three-wheelers, 301 electric small commercial vehicles, 56 electric heavy trucks, and 29 electric tractors. Notably, the company claims over 40 per cent market share in the electric heavy truck space and is actively developing industry-specific applications, particularly in cement logistics, to boost adoption.

Competition and Expansion Strategy

In the electric three-wheeler market, TI Clean Mobility has built a presence through 117 dealerships, covering approximately 65–70 per cent of the total addressable market. Despite this strong footprint, competition has intensified with established players like Mahindra and Piaggio expanding their EV offerings. To stay ahead, the company is working on reducing bill-of-material costs, strengthening dealer relationships, and rolling out products across key power categories.

Meanwhile, the electric small commercial vehicle segment is showing early promise, with positive customer response and growing interest from fleet operators. In the heavy commercial vehicle category, TI Clean Mobility is taking a targeted approach by developing customised solutions for industries such as cement and logistics, aligning product features with real-world operational needs.

Overall, TII’s renewed investment signals a long-term bet on electric mobility, even as the business navigates near-term losses and intensifying competition in India’s rapidly evolving EV landscape.