Murugappa Group is strengthening its electric mobility business with a clear focus on achieving profitability across its electric vehicle (EV) operations. The group’s engineering flagship, Tube Investments of India (TII), aims to achieve EBITDA break-even in three of its four electric vehicle businesses by FY2028, as it looks to expand operations and improve cost efficiency.
The group’s electric mobility operations are managed through its subsidiary, TI Clean Mobility (TICM). According to the company’s management, the electric truck business is expected to achieve EBITDA break-even by the fourth quarter of FY2027, while two other EV businesses are targeting the same milestone by the fourth quarter of FY2028. The fourth business is still at an early stage of development.
During its Q2 FY2027 earnings call, management highlighted that achieving the required scale across individual business segments will be essential to improving financial performance. The company is prioritising EBITDA break-even at the organisational level before moving towards overall net profitability.
Rising Costs Create Challenges for EV Profitability
Despite increasing sales and market presence, TI Clean Mobility is facing pressure from rising input costs. Higher battery cell prices, rupee depreciation and increasing commodity prices have pushed up the bill of materials (BOM), affecting the profitability of its electric vehicle portfolio.
To address these challenges, the company is focusing on reducing component costs, strengthening after-sales services, identifying profitable applications and introducing products suited to customer requirements.
The company is also exploring selective price increases and improved pricing strategies on individual deals to protect margins. Longer-term procurement arrangements and supply contracts are among the measures being considered to manage input-cost fluctuations.
Strong Market Position in Electric Trucks and SCVs
TI Clean Mobility has established a notable presence in India’s electric commercial vehicle market, particularly in electric trucks and small commercial vehicles (SCVs).
According to management, the company holds approximately 25-26% market share in both electric truck and electric SCV segments. Its share of electric tractor registrations also stood at around 25% during the first half of FY2027, based on VAHAN registration data.
However, the company has more work to do in the electric three-wheeler segment. Its market share in both passenger and cargo electric three-wheelers remains in the low single digits, highlighting the need to strengthen its competitive position.
Electric Vehicle Sales Increase in Q2 FY27
TI Clean Mobility reported improved sales across all four EV categories during the second quarter of FY2027.
The company sold 311 electric trucks, compared with 86 units in the previous quarter. Electric three-wheeler sales increased to 2,242 units from 1,924 units, while electric SCV sales reached 483 units against 347 units in the preceding quarter.
Electric tractor sales also increased to 50 units from 22 units in the previous quarter.
These numbers indicate growing business activity across the company’s electric mobility portfolio, although sustained demand and improved operating margins will remain important for achieving its profitability targets.
EV Revenue More Than Doubles in First Half of FY27
TI Clean Mobility’s combined EV revenue more than doubled to ₹715 crore in the first half of FY2027, compared with ₹313 crore during the corresponding period last year.
The company has reiterated its ambition to generate ₹1,000 crore in EV revenue by 2030. To support its expansion plans, Tube Investments invested ₹250 crore in its EV business during Q2 FY2027 through compulsorily convertible preference shares.
TI Clean Mobility currently has cash reserves of approximately ₹315 crore, which management expects will be sufficient to meet its funding requirements for FY2027. Additional funding requirements for FY2028 will be evaluated later.
With rising EV sales, an expanding commercial vehicle portfolio and continued investments in cost optimisation, Murugappa Group is positioning TI Clean Mobility for long-term growth. Achieving the targeted EBITDA break-even milestones by FY2027 and FY2028 will be a key test of the company’s ability to build a sustainable and profitable electric mobility business in India.
