Tube Investments of India Announces Major Capital Infusion for EV Subsidiary
In a significant move to bolster its electric vehicle (EV) ambitions, Tube Investments of India (TII), the engineering flagship of the Chennai-based Murugappa Group, has unveiled plans to invest an additional Rs 500 crore to Rs 750 crore in its subsidiary, TI Clean Mobility. This fresh capital injection aims to accelerate the scaling of operations and drive the business toward financial sustainability, despite acknowledging initial delays and ongoing losses in the competitive EV landscape.
Strategic Investment to Fuel Growth and Achieve Break-Even
Vellayan Subbiah, Vice Chairman of Tube Investments, emphasized the strategic timing of this decision during the company's Q3 FY26 earnings call. "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," Subbiah stated. The proposed investment will be channeled into three key areas:
- Improving cost competitiveness to enhance market positioning.
- Expanding distribution networks to reach a wider customer base.
- Accelerating product development to stay ahead in innovation.
This follows an initial investment of approximately Rs 750 crore already deployed into the EV venture, underscoring the group's long-term commitment to the electric mobility sector.
Financial Performance and Break-Even Roadmap
The EV business reported a loss of Rs 164.31 crore for the December 2025 quarter, reflecting the challenges of scaling in a capital-intensive industry. Management has set clear milestones, targeting EBITDA and cash flow break-even as the first step before achieving sustained profitability. While acknowledging that scaling has taken longer than anticipated, the leadership remains optimistic about the strong growth potential driven by the gradual transition from internal combustion engine (ICE) vehicles to electric alternatives across target segments.
Diverse EV Portfolio and Market Performance
TI Clean Mobility operates across four distinct EV segments, each at different stages of development:
- Electric Three-Wheelers: Sold 1,816 units in the December quarter, with a dealership network of 117 outlets covering 65%-70% of the addressable market. However, competition is intensifying from established players like Mahindra and Piaggio.
- Small Commercial Vehicles (SCVs): Sold 301 units, showing encouraging traction and positive market response in early adoption stages.
- Medium and Heavy Commercial Vehicles (M&HCVs): Sold 56 heavy trucks, claiming over 40% market share in this niche. The company is developing tailored use cases, such as cement logistics, to boost adoption.
- Electric Tractors: Sold 29 units, with growth expected as the segment matures.
Management anticipates that heavy trucks and three-wheelers will reach break-even first, followed by small commercial vehicles and tractors, aligning with market dynamics and operational efficiencies.
Competitive Strategy and Future Outlook
To strengthen its market position amid rising competition, TI Clean Mobility is implementing a multi-pronged strategy:
- Reducing bill-of-materials (BOM) costs to improve affordability.
- Deepening dealer engagement to enhance sales and service networks.
- Launching products in key power categories to meet diverse customer needs.
In the heavy commercial vehicle segment, the focus is on targeting specific verticals like cement and logistics by developing customized solutions that align with client requirements. This approach aims to leverage the company's engineering expertise and foster early adoption in industrial applications.
With this renewed investment and strategic focus, Tube Investments of India is positioning TI Clean Mobility to capitalize on India's evolving electric mobility ecosystem, aiming to transform initial challenges into long-term success as the industry shifts toward sustainable transportation.
