Bharat Alt Fuel earmarks Rs 250 crore for EV unit in Krishnagiri

CHENNAI: Bharat Alt Fuel (BAF) has announced an investment of Rs 250 crore for setting up of a greenfield facility in Krishnagiri to manufacture Electric Vehicles (EVs), batteries and motors.

This integrated facility will be built over 40,000 sqm and commence the production in the second half of 2023.

The investment will support a project that will span over three years and help localise the manufacturing process, as part of the hundred per cent ‘Made-in-India’ pitch of the brand. The facility will have an initial production capacity of 25,000 units and will scale up to 100,000 EVs over the year.

Sorubh Kumar Bharti, ED, Bharat Alt Fuel said, BAF aspires to be a catalyst for change wherever it is needed, so it makes perfect sense that we are bringing electric two-wheelers to one of the world’s largest vehicle market. Along with the vehicle assembly, our new factory will be making all the critical components including batteries and motors. Establishing a global manufacturing footprint is a practical, natural step and enables us to grow our brand, scale our business, and address climate change through inspiring sustainable transportation.”

Construction of the plant is expected to start in the Q4 of 2022-23 and will be partially operational by 2023. Initially, BAF will employ 1,000 people and once the facility is fully operational, it will provide employment to 3,000 people, direct and indirectly. Vehicles in the initial phase will be slated for the market in India, but BAF plans to export electric two-wheelers to other global markets like ASEAN and African countries.

The new facility will be fully owned by BAF and enable the company to meet growing domestic and international demand for electric vehicles. BAF is also in the process of signing some international tech collaborations which will aid it to bring world class products in domestic markets.