Tsuyo Secures INR1,800 Crore Investment for Karnataka Powertrain Plant

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  Published in Automotive and Transportation on Thursday, November 20th 2025 at 6:58 GMT by ThePrint
      Locale: INDIA

A New Chapter in Karnataka’s Electric Vehicle Ecosystem: Tsuyo’s Powertrain Plant Pact

The Print’s recent coverage of a landmark agreement between Bangalore‑based mobility startup Tsuyo and the Karnataka state government marks a significant stride toward the region’s ambition of becoming a national hub for electric mobility. The pact, which inked in early October 2024, paves the way for the establishment of a state‑of‑the‑art EV powertrain manufacturing plant in the state. With the plant’s launch slated for 2025, the deal promises a boost to local employment, supply‑chain development, and the state’s reputation as a forward‑thinking player in India’s burgeoning EV market.

Who is Tsuyo?

Tsuyo is a relatively young entrant in the Indian electric vehicle landscape, founded in 2021 by a team of engineers from premier Indian institutes such as the Indian Institute of Technology (IIT) Bombay and the National Institute of Technology (NIT) Trichy. The company’s core focus is on the design and production of compact, high‑efficiency electric motors and integrated powertrains that can be seamlessly fitted into a wide spectrum of EVs—from two‑wheelers and scooters to compact cars and commercial vans.

The startup has already secured two rounds of funding—Series A in 2022 (₹20 crore) and Series B in 2023 (₹50 crore)—which were led by a mix of domestic venture capitalists and a consortium of institutional investors from the European EV supply chain. Tsuyo’s technology stack is distinguished by its use of silicon‑nanoparticle‑based magnetic alloys, allowing its motors to deliver up to 15 % higher torque density than most conventional brushless DC motors on the market today.

The Agreement in Detail

Investment Commitment and Land Allocation
Under the Memorandum of Understanding (MoU) signed on 5th October 2024, Tsuyo has committed to investing ₹1,800 crore (approximately US$225 million) in the construction of a 150‑hectare plant at a site in the Bengaluru Economic Development Zone (BEDZ). The Karnataka government has, in turn, earmarked a 75‑hectare plot in the same zone, offering tax incentives (up to 70 % exemption on import duties for critical components) and a 15‑year exemption on the municipal corporation’s property tax.

Job Creation and Skill Development
The plant is projected to create roughly 300 direct jobs and an additional 200 indirect jobs in allied sectors such as battery cell assembly, quality assurance, and logistics. The government has committed to partnering with local polytechnic institutes to run a tailored skill‑development program, ensuring a ready pool of technically trained workers.

Technology Transfer and R&D Collaboration
A pivotal element of the pact is a joint research and development initiative between Tsuyo’s engineering team and the Karnataka Institute of Technology (KIT). This collaboration will focus on advancing motor control algorithms and battery‑management systems, with the dual objective of reducing energy consumption by at least 10 % and improving the thermal management of powertrains.

Supply Chain Localization
Tsuyo has pledged to source at least 70 % of its critical components locally within the first three years of operation. The state’s industrial development board will facilitate the creation of a “powertrain cluster” around the plant, linking raw‑material suppliers, component manufacturers, and testing laboratories. In line with India’s “Make in India” ethos, Tsuyo’s supply‑chain map also identifies potential partners in the state’s established electronics and battery sectors.

Why Karnataka?

Karnataka’s push for electric mobility has gained momentum in the last decade. The state government’s Karnataka EV Policy 2023, which is referenced throughout The Print’s article, sets out a roadmap for the deployment of EV charging infrastructure, tax incentives for OEMs, and a clear goal of having 25 % of all passenger vehicles be electric by 2030. The policy also earmarks ₹5,000 crore for subsidies to EV manufacturers, positioning Karnataka as a financially supportive environment for new entrants.

The agreement with Tsuyo dovetails neatly with this policy framework. By focusing on powertrains—a segment that has historically been dominated by large global players—Karnataka hopes to break the supply‑chain bottleneck that has slowed the adoption of electric cars in India. Moreover, the state's strategic location, proximity to tech hubs like Bangalore and Mysore, and an already robust talent pool make it an ideal launchpad for high‑tech manufacturing ventures.

Broader Implications for India’s EV Landscape

India’s National Electric Mobility Mission Plan (NEMMP) 2020–2030 has set ambitious targets: 30 % electric vehicle penetration by 2030, a national battery capacity of 2.4 GWh, and 3,500 EV charging points across the country. The Tsuyo‑Karnataka pact brings the state one step closer to these targets by:

1. Reducing Dependence on Imports – Locally manufacturing high‑performance powertrains will cut down the country’s reliance on imported motors and electronic control units (ECUs).
2. Encouraging Innovation – The joint R&D initiative can seed novel solutions—such as integrated motor‑battery‑control units—that may become industry standards.
3. Creating Economic Multipliers – The expected job creation, coupled with the ripple effects on ancillary sectors, could generate significant regional economic activity.

The article also hints at potential spill‑over benefits for other states. For instance, the Gujarat government has recently floated a similar proposal to set up an EV powertrain plant in the Surat region. By benchmarking Tsuyo’s model, policymakers elsewhere may refine their incentive packages and infrastructure plans.

Key Quotes from the Deal

• Tsuyo CEO, Dr. Anjali Mehta: “We are thrilled to bring cutting‑edge powertrain technology to Karnataka, a state that embodies India’s spirit of innovation. This plant will not only produce components but also incubate talent and nurture a robust EV ecosystem locally.”
• Karnataka Minister of Science & Technology, R. S. Prasad: “The government’s commitment to fostering high‑tech manufacturing aligns perfectly with our vision for a green, sustainable Karnataka. By partnering with Tsuyo, we are investing in a future where the state stands as a global benchmark for electric mobility.”

Conclusion

The Tsuyo‑Karnataka pact marks a watershed moment for electric mobility in southern India. By marrying a forward‑thinking startup’s technological prowess with the Karnataka government’s supportive policy framework, the agreement lays the groundwork for a self‑sustaining powertrain manufacturing ecosystem. As the plant gears up for its inaugural production run, stakeholders across the industry will be watching closely to gauge whether this model can catalyze a broader shift toward localized, high‑quality EV manufacturing in India.