Monday, August 25, 2025

Tesla’s Entry to Elevate India’s EV Sector: Mahindra’s Velusamy Highlights Tamil Nadu’s Rapid Transformation

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India’s electric vehicle (EV) industry is on the cusp of a major transformation, and Tesla’s anticipated entry into the Indian market could serve as a powerful catalyst, according to Velusamy R, President of Automotive Technology and Product Development at Mahindra & Mahindra (M&M).

In an interview with The Times of India, Velusamy remarked that Tesla’s arrival will “raise the bar” for EVs in the country, particularly in the premium segment. “It will drive innovation, competition, and push suppliers to align with global standards,” he stated. Quoting Anand Mahindra, he added, “Looking forward to seeing you at the charging station.


Tamil Nadu has rapidly emerged as one of India’s leading EV hubs, evolving from a nascent ecosystem in 2021 to a full-fledged innovation center. M&M began developing its born-electric SUVs at the Mahindra Research Valley (MRV) near Chennai around this time.

When we started, there was more curiosity than capability,” Velusamy said, noting that supplier networks, academic institutions, and policy support were still taking shape in 2021. In response, Mahindra collaborated with global experts from Europe, the US, Korea, and the UK to upskill its engineering teams and develop advanced EV platforms.

Today, MRV stands as a core R&D hub driving innovation in electric SUVs, along with fostering a culture of software and component-level advancements.


Velusamy credited the Tamil Nadu government for offering strong EV policy support, including road tax exemptions and capital subsidies, which have encouraged tier-1 and tier-2 suppliers to actively invest in EV technologies.

He also spotlighted Coimbatore as a growing tech hotspot, where Mahindra’s Software Defined Vehicle (SDV) centre is focused on developing next-gen EV software and electrical architectures.


While Tesla’s immediate manufacturing footprint may be limited, its presence is expected to bring strategic benefits, including:

  • Raising global competitiveness
  • Motivating local suppliers
  • Accelerating tech alignment with international benchmarks

It sends the right signal to the industry, even if volume impact is delayed,” Velusamy said.


He also praised Tamil Nadu’s comprehensive EV strategy, which includes battery recycling and raw material planning, adding that other Indian states are beginning to follow suit under central government guidelines.


Velusamy outlined key pillars necessary for any Indian state to thrive in EV product development:

  • Skilled engineering talent
  • Robust supplier networks for electronics and software
  • Battery and cell development capabilities
  • Advanced R&D infrastructure

He believes Tamil Nadu already has a strong foundation in all these areas, making it a model for other states to emulate as India accelerates toward a clean mobility future.

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