Electric vehicle (EV) manufacturer Zelio E-Mobility has announced the opening of its new manufacturing facility in Coimbatore, Tamil Nadu. The plant has an installed production and assembly capacity of 60,000 units per annum.

Spread across 39,000 sq. ft., the facility will support electric scooter assembly, storage, logistics, and allied business operations. It will primarily cater to Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, and South Maharashtra.

The plant was established with a capital investment of around ₹10 million (~$104,428) and currently employs 30 direct workers.

The plant is expected to manufacture and assemble around 24,000–30,000 electric two-wheelers annually during the initial phases of production.

Over the next few years, the facility is expected to contribute to Zelio’s growth by enhancing dealer penetration, after-sales service, and supply chain resilience.

The Haryana-headquartered company has also set up plants at Ladwa and Patan in Haryana, and at Cuttack in Odisha.

With the new facility, Zelio’s aggregate installed manufacturing capacity has now increased by 33% to 240,000 units per annum.

In financial year 2025-26, Zelio’s revenue rose 81.8% year-on-year to ₹3.14 billion (~$32.76 million). The company has clocked a revenue CAGR of 121% over the last four years.

In January this year, the Tamil Nadu government extended the 100% exemption from motor vehicle tax for all EVs until December 31, 2027.

The order provides a complete waiver of motor vehicle tax for both transport and non-transport battery-operated vehicles. The exemption will apply to all categories of EVs registered in the state during the validity period and eliminates the requirement to pay any lifetime or upfront motor vehicle tax at the time of registration.

EV sales in India reached 696,769 units in the first quarter of 2026, an increase of around 35.5% year-over-year from 514,198 units. EVs account for 9% of overall automobile sales, which totaled 7,889,101 units during the quarter, according to the data shared by the Ministry of Road Transport and Highways through its Vahan dashboard. Currently, India has over 8.35 million registered EVs.