Murugappa Group‘s engineering flagship, Tube Investments of India (TII), plans to invest an additional ₹500 crore – ₹750 crore in its electric vehicle subsidiary, TI Clean Mobility, as it looks to scale up operations and move towards break-even despite initial delays and losses.
The company has already invested about ₹750 crore in the EV business.
“We are at a stage where manufacturing capacity has been established, and we are beginning to see green shoots across many of the new products we have launched. Now is the time to double down on the EV business,” said Vellayan Subbiah, vice chairman, Tube Investments, during the company’s Q3 FY26 earnings call.
The proposed investment will focus on improving cost competitiveness, expanding distribution, and accelerating product development. Management is targeting EBITDA and cash flow break-even as an initial milestone, before progressing towards sustained profitability. The EV business reported a loss of ₹164.31 crore in the Dec 2025 quarter.
The management acknowledged that the EV business is taking longer than expected to scale but reaffirmed its long-term commitment, citing strong growth potential and the gradual shift from internal combustion engine (ICE) vehicles to electric mobility across its target segments.
TI Clean Mobility currently operates across four EV segments—electric three-wheelers, small commercial vehicles (SCVs), medium and heavy commercial vehicles (M&HCVs), and electric tractors. Management expects heavy trucks and three-wheelers to achieve break-even first, followed by small commercial vehicles and tractors.
During the Dec quarter, the company sold 1,816 electric three-wheelers, 301 electric small commercial vehicles, 56 electric heavy trucks, and 29 electric tractors. In the electric heavy truck segment, the company said it holds over 40 per cent market share and is developing segment-specific use cases, such as cement logistics, to drive adoption.
In the electric three-wheeler segment, TI Clean Mobility has established a network of 117 dealerships, covering around 65 per cent–70 per cent of the industry’s total addressable market. However, competition has intensified, particularly from established players such as Mahindra and Piaggio. To strengthen its position, the company is focusing on reducing bill-of-materials (BOM) costs, deepening dealer engagement, and launching products in key power categories.
The company is also seeing encouraging traction in electric small commercial vehicles, where products have received a positive market response and adoption remains at an early stage. In the heavy commercial vehicle segment, TI Clean Mobility is targeting specific industry verticals such as cement and logistics by developing tailored use cases aligned with customer requirements.
