Dao EVTech, an EV scooter manufacturing start-up headquartered in Chakan near Pune in Maharashtra, has plans to invest Rs 100 crore in Tamil Nadu. The company currently has 22 showrooms operational across the country and with this investment, it has plans to grow that number.
Dao to expand dealer network in Tamil Nadu: details
Dao EVTech already has active dealerships in Madurai, Pollachi, Coimbatore, and Thanjavur in Tamil Nadu. In particular, the 20 dealerships that Dao had planned to open in Chennai will all be operational within the next few months.
The brand is now focusing on building and developing the dealership's connecting power; it will soon grow significant cities like Chennai as its centre for regular demand fulfilment in nearby Tier 2 and Tier 3 cities.
Dr Michael Liu, chairman and CEO of Dao EVTech, stated, "Tamil Nadu market is crucial to any EV two-wheeler manufacturer. There are three basic reasons for this. The first is, Tamil Nadu's capital Chennai has the highest two-wheeler penetration rate of 73 percent, which is nearly double that of other major cities such as Mumbai and Bangalore. The EV segment is a growing business that is more focused on young individuals who embrace technology quickly, and the state has a large population, making Tamil Nadu an EV-friendly state."
He further added, "We will continue investing $100 million in India and in 2023, we'll set aside $20 million for the development of novel products... With our expansion strategy, we expect to generate 2000 new positions over the next two years.”
Recently, the Tamil Nadu state government announced its EV policy which favours the manufacturing of electric vehicles. Ola Electric has also signed an MoU with the TN state govt. to set up a new EV hub in the state.
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