Did Auto Parts Suppliers Err in Making EVs?

Greaves Cotton, Tube Investments and Pinnacle Industries have bled money since they began their EV journey

- Ayaan Kartik

In 2018, Greaves Cotton Ltd, an engine manufacturer that traces its origins back to 1859, sensed an opportunity in the country's nascent electric two-wheeler market. And that made it do something unusual for an auto ancillary company—it entered the world of vehicle manufacturing, acquiring a majority stake in the Ratan Tata-backed electric scooter maker Ampere for ₹77 crore. Within a year, the Mumbai-based company increased its stake for a total investment of over ₹120 crore.

Down south, the Murugappa Group's Tube Investments of India Ltd had entered the electric vehicle (EV) segment back in 2008 with a scooter brand, but exited quickly in the face of poor demand. Eyeing the electric three-wheeler segment, the Chennai-headquartered finance-to-fertilizers conglomerate entered the market again in 2022 through TI Clean Mobility Pvt. Ltd. The subsidiary started selling its vehicles under the brand name Montra, and within two years managed to raise over ₹2,500 crore.

Also in 2022, the nearly three-decade-old automotive seat and interior maker Pinnacle Industries Ltd entered the electric bus and three-wheeler market through EKA Mobility. The Pune-based company, which has mainly worked as a supplier to commercial vehicle makers and manufacturers of some specialty vehicles, tried to cash in on the electrification wave through a partnership with Dutch conglomerate VDL Group.

Things haven't quite gone quite as well for Greaves Cotton, Tube Investments of India and Pinnacle Industries since they crossed over into making EVs. While EV sales have skyrocketed between 2020 and 2024—from less than 100,000 to close to two million—the three companies have been bleeding, with combined losses of close to ₹1,600 crore since they began this journey.