Tube Investments of India Ltd (TII) has reaffirmed its long-term commitment to electric mobility, signalling a renewed push to scale its EV vertical TI Clean Mobility, even as the business has taken longer than expected to reach breakeven. Addressing analysts, Vellayan Subbiah, Vice Chairman, Tube Investments of India, acknowledged early execution challenges but said the company is now firmly in a phase of consolidation, product correction and renewed investment.
Subbiah candidly described the EV journey as a “learning curve,” noting that certain strategic and execution missteps led to slower-than-anticipated progress in some segments. However, he emphasised that the fundamental thesis behind the EV business remains intact, with internal combustion engine (ICE) components and products expected to be progressively replaced over time.
“Capacity has now been built out, and we are beginning to see green shoots across several new products. This is the time to double down on the business, not to step back,” Subbiah told analysts, adding that while the path to profitability has been delayed, management conviction in the business remains strong.
Responding to questions on capital allocation amid continuing losses, Subbiah said TII, from the stable of Murugappa Group, is prepared to make incremental investments of ₹500 crore to ₹750 crore from the parent balance sheet over the next couple of years to support the EV turnaround, beyond the capital already deployed.
The immediate focus, he said, is to achieve EBITDA and cash flow breakeven, followed by a transition to sustained profitability. “Scaling automotive businesses takes time, and very few players have successfully entered and scaled in this sector quickly. As long as our conviction remains high, we will continue to invest and build,” he noted. For the quarter, TI Clean Mobility reported losses of ₹164.31 crore, reflecting the ongoing investment phase and market development costs.
Subbiah outlined a product- and segment-specific strategy to regain competitiveness, particularly in areas where incumbents have accelerated their offerings. In the electric three-wheeler segment, where competitive intensity has increased, the company is focused on lowering cost structures and improving product competitiveness, especially in the key L5M category. The strategy includes sharpening offerings in the 10.6 kW segment, where TI Clean Mobility competes directly with market leaders, while selectively expanding into adjacent power categories, without undertaking large incremental capex. Product-related issues, Subbiah said, are now largely behind the company, allowing management to focus on channel relationships and sales execution.
The small commercial vehicle (SCV) EV segment has seen encouraging early traction, with limited competition and rising adoption. TII believes this segment offers meaningful headroom for scaling, supported by strong product acceptance.
In the medium and heavy commercial vehicle (M&HCV) EV space, TI Clean Mobility currently accounts for over 40% of products sold in the market, with growth being driven by the development of specific use cases rather than mass adoption at this stage.
Looking ahead, Subbiah expressed confidence in three-wheelers and heavy commercial vehicles achieving breakeven within the next 12 to 18 months, given their longer operating track record. This is expected to be followed by the SCV segment and, subsequently, electric tractors.
Despite near-term losses and competitive pressures, Tube Investments sees the EV vertical as a strategic pillar for future growth, underpinned by sustained capital support, sharper product positioning and a clearer path to operational breakeven. The company reiterated that its approach remains disciplined, conviction-led and focused on building scalable electric mobility platforms over the long term.